Which Statement Is True About Interest Rate Movements

question 54

Multiple Choice

Which statement is true about interest rate movements?

• A) Interest rates move counter-cyclically with the business cycle.
• B) Long-term interest rates have greater swings than short-term rates.
• C) The expected rate of inflation impacts the level of interest rates.
• D) Bond prices and interest rates move directly with one another.

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Definitions:

S Corporation

A type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing profits and some losses to be passed directly to owners' personal income without being subject to corporate tax rates.

Business Ownership

The legal possession and responsibility for an enterprise, involving rights to the profits and risks of losses.