How does change in funds operation affect demand for asset

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Problem 1: Suppose you own shares in a stock index fund that tracks the value of the S&P 500. The firm that offers the fund recently imposed restrictions on the number of shares that may be redeemed for cash on a given day. How does this change in the funds operation affect the demand for this asset?

A. Demand does not change
B. Demand shifts rightward
C. Demand shifts leftward

Problem 2: Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now. What happens to the present value of this bond payment if the interest rate increases?

A. Present value increases
B. Present value is not affected
C. Present value declines

Reference no: EM132987127

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