Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A)An increase in interest rates will benefit the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• B)An increase in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• C)An increase in interest rates will harm the FI since the decrease in the market value of assets will be greater than the decrease in the market value of liabilities.
• D)A decrease in interest rates will harm the FI since the increase in the market value of assets will be greater than the increase in the market value of liabilities.
• E)A decrease in interest rates will benefit the FI since the increase in the market value of assets will be smaller than the increase in the market value of liabilities.

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Definitions:

Aristotle

An ancient Greek philosopher and polymath during the Classical period in Ancient Greece, whose works covered a wide range of subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, linguistics, politics, government, ethics, biology, and zoology.

Human Nature

The inherent characteristics and behaviors that every human being shares.

Virtue

A quality considered morally good or desirable in a person.

Kohlberg Construct

A theoretical framework concerning the stages of moral development formulated by psychologist Lawrence Kohlberg.