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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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