As Interest Rates Fall, a Firm Would

question 165

Multiple Choice

As interest rates fall, a firm would

• A) have higher expected costs of investment.
• B) have decreasing present value of expected earning.
• C) be willing to pay less now to purchase the same number of future dollars.
• D) be willing to pay more now to purchase the same number of future dollars.

Identify and apply the correct approach to assigning probabilities (classical, relative frequency, or subjective).

Analyze real-life data to calculate probabilities for given events.

Evaluate different approaches to probability to determine the most appropriate for a given scenario.

Understand the components and characteristics of motivation such as direction, activation, and persistence.

---

Definitions:

Voucher

A document that acts as evidence of a financial transaction, authorizing payment or receipt of money.

Accounts Payable

Financial obligations or debts owed by a business to its suppliers or creditors for goods and services received.

Cash Payments Journal

An accounting journal used to record all cash payments, including expenses and creditor payments.

Check Register

A record kept to track written checks, deposits, and withdrawals in a checking account, aiding in account reconciliation and financial management.