Suppose Present Interest Rates Are Relatively High

question 30

Multiple Choice

Suppose present interest rates are relatively high. Financial investors will hold

• A) smaller speculative balances because they expect bond prices to fall further.
• B) larger speculative balances because they expect bond prices to fall further.
• C) smaller speculative balances because they do not expect bond prices to fall further.
• D) larger speculative balances because they do not expect bond prices to fall further.

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Definitions:

Intelligence Quotient

A measure of a person's intellectual abilities in relation to their age group, commonly expressed as a score derived from standardized tests.

Sternberg

Refers to Robert Sternberg, an American psychologist known for his theory on intelligence, creativity, wisdom, and love.

Terman

Lewis M. Terman, an American psychologist who is best known for his revision of the Stanford-Binet Intelligence Scales and studies on gifted children.

Mental Age

The level of mental ability or intelligence of an individual as compared to the average mental capability for their actual age.