New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    Consider the following: Statement 1: There

    exists an inverse relationship between market rates of interest and price of bond Statement 2: The liquidity trap is a situation when at some very low rate of interest all asset holders become bears
    A both are incorrect Correct Answer Incorrect Answer
    B both are correct Correct Answer Incorrect Answer
    C statement one is correct and two is not correct Correct Answer Incorrect Answer
    D statement one is incorrect and two is correct Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    Both the statements are correct

    Practice Next