What will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected?
A. Liquidity of bonds relative to other assets will decrease, increasing the interest rate and lowering bond's prices.
B. Liquidity of bonds relative to other assets will increase, decreasing the interest rate and lowering bond's prices.
C. Riskiness of bonds relative to other assets will decrease, increasing the interest rate and increasing bond's prices.
D. Riskiness of bonds relative to other assets will increase, decreasing the interest rate and increasing bond's prices.
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