Savers Should Do Which of the Following in Times of Falling

question 21

Multiple Choice

Savers should do which of the following in times of falling interest rates?

• A)Use long-term loans to take advantage of current low rates.
• B)Use short-term loans to take advantage of lower rates when you refinance the loans.
• C)Select short-term savings instruments to take advantage of higher rates when they mature.
• D)Select short-term savings instruments to lock-in earnings at current high rates.
• E)Select long-term savings instruments to lock-in earnings at current low rates.