If the Slope of the Relationship Between Savings and Interest

question 276

Multiple Choice

If the slope of the relationship between savings and interest rates is 0.5, then

• A) savings and interest rates have a positive relationship.
• B) savings and interest rates have a negative relationship.
• C) savings and interest rates have no relationship.
• D) savings and interest rates have an inverse relationship.

---

Definitions:

Dividend Reinvestment Plans

Programs offered by corporations that allow investors to automatically reinvest their cash dividends in additional shares of the company's stock on the dividend payment date.

Preferred Stock

A type of stock that typically pays dividends at a fixed rate and has priority over common stock in terms of dividend payments and assets in the event of liquidation.

Ex-dividend Date

The date on which the buyer of a stock is not entitled to the next dividend payment. After this date, the stock sells without its dividend rights.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment.