If You Forecast That Interest Rates Are Likely to Decrease

question 17

True/False

If you forecast that interest rates are likely to decrease over the next several years, you might sell a T-bond futures contract or buy an interest rate cap to take advantage of your expectations.

---

Definitions:

IQ Scores

IQ scores, or Intelligence Quotient scores, are a standard measure used to assess human intelligence, typically through standardized tests yielding a score that aims to place an individual’s intelligence level on a scale.

Skin Elasticity

The ability of the skin to stretch and return to its original shape, indicating its health and aging.

Spatial Awareness

The awareness of the body's position and movement in space, crucial for coordination and navigation.

Warner Schaie

A psychologist known for his work in the field of adult development, particularly for his studies on cognitive aging.