Civil Services Chhattisgarh State Service (CGPSC) Prelims Mock Test 2025 Current Affairs Business and Economy
Consider the following statements:
Statement-I: An increase in interest rates generally leads to a rise in bond yields.
Statement-II: Bond yields and bond prices are directly proportional, meaning they move in the same direction.
Which one of the following is correct in respect of the above statements?
1
Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I
2
Both Statement-I and Statement-II are correct, but Statement-II is not the correct explanation for Statement-I
3
Statement-I is correct, but Statement-II is incorrect
4
Statement-I is incorrect, but Statement-II is correct