In General, When Interest Rates Are Expected to Rise, Financial

question 16

Multiple Choice

In general, when interest rates are expected to rise, financial managers

• A) try to lock in long-term financing at low cost.
• B) balance the company's debt structure with more short-term debt and less long-term debt.
• C) accept more risk.
• D) rely more on internal sources of funds rather than external sources.

---

Definitions:

Hypothetical Questions

Questions based on possible, imagined, or theoretical scenarios rather than real or current situations, often used in legal contexts for analysis.

Expert Witnesses

Individuals with specialized knowledge, skills, or experience in a particular field who are called upon to provide testimony in legal proceedings to help clarify complex issues.

Hostile Witnesses

Witnesses whose testimony is not favorable to the party who called them to testify, often leading to cross-examination.

Closed-Ended Question

A type of question that typically requires a simple, definitive answer, often yes or no, rather than a detailed or open-ended response.