When the demand for bonds ________ or the supply of bonds ________,bond prices rise.
A) increases; decreases
B) decreases; increases
C) decreases; decreases
D) increases; increases

Question

Quizplus · Accepted Answer

When the demand for bonds increases, more people want to buy bonds, which drives up their prices. On the other hand, when the supply of bonds decreases, there are fewer bonds available for purchase, which also drives up prices. Therefore, when demand increases or supply decreases, bond prices rise.

When the Demand for Bonds ________ or the Supply of Bonds