Which One of the Following Will Tend to Decrease the Rate

question 84

Multiple Choice

Which one of the following will tend to decrease the rate of return on an investment?

• A) Increased assurance of reinvestment rates at the desired rate of return.
• B) Reduction in tax rates.
• C) Stabilisation of inflation rates at a reasonably low level.
• D) Elimination of a tax exemption relevant to the investment.

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Definitions:

Bond

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, often used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Wine Drinkers

Individuals who consume wine, often with an appreciation for its varieties and pairings with food.