New SIDBI Grade A New Batch Starts on Nov 18

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    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

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