A Rise in Short-Term Interest Rates That Is Believed to Be

question 18

Multiple Choice

A rise in short-term interest rates that is believed to be only temporary

• A)is likely to have a significant effect on long-term interest rates.
• B)will have a bigger impact on long-term interest rates than if the rise in short-term rates had been permanent.
• C)is likely to have only a small impact on long-term interest rates.
• D)cannot possibly affect long-term interest rates.

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Definitions:

Interest Rates

The percentage charged on the total amount borrowed or paid on investment, typically expressed annually.

Notes

Financial statements’ supplementary information, detailing the specific accounting policies, methodologies, and any additional information required for a full understanding of the financial position and performance.

Loans

Money lent to individuals, businesses, or other entities with the expectation of repayment with interest.

Equal Instalment Loans

Loans that are paid back in equal periodic payments, typically including both principal and interest components.