Just need help with these two thanks Which of the following assets will likely s
ID: 1102771 • Letter: J
Question
Just need help with these two thanks
Which of the following assets will likely show the greatest increase in value over time?
a) Savings accounts
b) Treasury bonds
c) Blue-chip stocks
d) Low-risk corporate bonds
When the stock market is rising rapidly, what tends to happen to bond prices and interest rates on bonds?
a) Bond prices will rise and interest rates on bonds will fall.
b) Bond prices will rise and interest rates on bonds will rise as well.
c) Bond prices will fall and interest rates on bonds will fall as well.
d) Bond prices will fall and interest rates on bonds will rise.
Explanation / Answer
c) Blue-chip stocks
the above is the answer
because equity is likely to give more growth in coming years
2)
d) Bond prices will fall and interest rates on bonds will rise.
the above is the answer
because when stock market rises that means economy is expanding which can result in inflation which means Fed tends to rise rate on bonds which will drop prices of the bonds.
the above two are the answers.Thanks. Ask for any doubts.
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