Which of the Following Statements Is CORRECT

question 15

Multiple Choice

Which of the following statements is CORRECT?

• A) If expected inflation increases, interest rates are likely to increase.
• B) If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.
• C) If companies have fewer good investment opportunities, interest rates are likely to increase.
• D) Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities.
• E) Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

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Definitions:

Key Partners

Strategic relationships with other businesses or entities that are essential to the success and operations of a company or organization.

Key Activities

The essential tasks or operations that must be carried out to deliver a company's value proposition to its customers.

Key Resources

The essential inputs and assets necessary for a business or organization to operate effectively and achieve its goals.

Business Model Canvas

A strategic management template used for developing new business models or documenting existing ones, visually outlining a company's value proposition, infrastructure, customers, and finances.