Demand For Bonds Falls In Fulton
Category:
State:
Multi-State
County:
Fulton
Control #:
US-00415BG
Format:
Word;
Rich Text
Instant download
Description
A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
Form popularity
More info
Deflation causes the demand for bonds to ______, the supply of bonds to ______, and bond prices to ______, everything else held constant. In a recession, when income and wealth are falling, the demand for bonds falls, i.e., the demand curve shifts to the left. On the graph to the right, show the effect on interest rates when expected inflation falls. 1. Using the line drawing tool, show the shift in bond demand. Conversely, if people save less, wealth and the demand for bonds will fall and the demand curve shifts to the left. In summary, rising expected inflation rates lead to decreased bond demand, increased bond supply, and higher interest rates in the bond market. Learn about the relationship between bond prices and interest rates. As the supply of bonds increases, the price of bonds decreases.
