You would be less willing to purchase bonds, other things equal, if ________.
A) you inherit $1 million from your Uncle Harry
B) you expect interest rates to fall
C) gold becomes more liquid
D) stock prices are expected to fall

Question

Quizplus · Accepted Answer

If gold becomes more liquid, it means it's easier to buy or sell gold without affecting its price. This increased liquidity makes gold a more attractive investment compared to bonds, especially if investors are looking for safer, more liquid assets. Hence, the attractiveness of bonds decreases in comparison.

You Would Be Less Willing to Purchase Bonds, Other Things