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.

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Definitions:

Real Estate Manager

A professional responsible for overseeing the daily operations of properties, ensuring they are well-maintained and financially viable.

Financial Broker

A professional who serves as an intermediary between a buyer and seller of financial securities, offering investment advice and executing transactions.

Management Broker

An intermediary who manages the buying and selling of businesses, or the provision of management resources to those businesses.

Bank Audits

A thorough examination of a bank's records and financial statements to ensure accuracy, compliance with regulations, and soundness of financial practices.