Which of the Following Good News and Bad News Effect

question 11

Multiple Choice

Which of the following good news and bad news effect is NOT true when mortgage interest rates decline, resulting in faster repayments?

• A)Lower market yields reduce the discount rates on any mortgage cash flows and increase the present value of any given stream of cash flows (good news effect).
• B)Low yields lead to faster prepayment of the mortgage pool's principal (good news effect).
• C)With early prepayments comes fewer interest payments in absolute terms (bad news effect).
• D)Faster cash flows due to prepayments can only be reinvested at lower interest rates (bad news effect).
• E)Faster cash flows due to prepayments can be reinvested at higher interest rates (good news effect).

Explain the concept and implications of the Ames room in studying optical illusions.

Understand auditory illusions and their causes.

Comprehend the explanations behind the moon illusion phenomenon.

Understand the basic structure and function of neurons and their key components.

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Definitions:

Long-term HR Priorities

Strategic human resource objectives focused on achieving sustainable competitive advantage over an extended period.

Leadership Development

The process of enhancing an individual's ability to lead, manage, and guide others within an organization.

Workforce Planning

The process of analyzing, forecasting, and planning workforce supply and demand, assessing gaps, and determining targeted interventions to ensure an organization can meet its goals and objectives.

Downsizing

Activities undertaken to improve organizational efficiency, productivity, and/or competitiveness that affect the size of the firm's workforce, its costs, and its work processes.