Question

Consider the following: Statement 1: There

Q: Answer-Consider the following: Statement 1: There exists an inverse relationship between market rates of i...

Both the statements are correct

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

B both are correct

C statement one is correct and two is not correct

D statement one is incorrect and two is correct

E none of these

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Consider the following: Statement 1: There

Solution