Interest Rate Risk Arises from Changes In

question 5

Multiple Choice

Interest rate risk arises from changes in:

• A) currency discount rates
• B) the value of fixed income securities because of changes in interest rates
• C) interest rates caused solely by inflation
• D) the value of currency relative to another currency

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Definitions:

Affect

A term referring to the experience of feeling or emotion.

Feeling State

The emotional condition or mood of an individual at a particular moment in time.

Automatic Response

An involuntary or reflex action that occurs in response to a stimulus without conscious thought.

Evaluative Reaction

Judgements or feelings about the value or worth of something, based on a rapid assessment.