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CTP · Question #165

CTP Question #165: Real Exam Question with Answer & Explanation

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Question

  • (Topic 2) If the Federal Reserve Board increased the discount rate, you would expect:

Options

  • Along-term bonds to increase more in price than short-term bonds.
  • Bshort-term bonds to decrease more in price than long-term bonds.
  • Clong-term bonds to decrease more in price than short-term bonds.
  • Dthat there would be no effect on either long- or short-term bond prices.

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