Corporate bond is not as liquid as cash because the bond

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1. A corporate bond is not as liquid as cash because the bond

must be exchanged for a stock certificate before it can be converted to spendable funds.

represents an exchange for gold only.

cannot be converted to spendable dollars either until it matures or is sold to another investor.

can be exchanged only for the goods or services produced by the company that issued the bond.

2. When interest rates rise, the transactions demand for money usually

does not change.

decreases initially and then increases to the original position.

increases.

decreases.

Reference no: EM131393702

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