Multiple Choice Questions on When price of a bond in the market rises the real rate of interest on this bond ........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

When price of a bond in the market rises the real rate of interest on this bond ........

Economic Affairs Financial Markets
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    When price of a bond in the market rises, the real rate of interest on this bond

    rises

    Correct Answer

    falls

    Incorrect Answer

    first falls and then rises

    Incorrect Answer

    first rises and then falls

    Incorrect Answer
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    Explanation:

    When price of a bond in the market rises, the real rate of interest on this bond rises. 

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