Which of the Following Statements Is CORRECT,other Things Held Constant

question 27

Multiple Choice

Which of the following statements is CORRECT,other things held constant?

• A) If companies have fewer good investment opportunities,interest rates are likely to increase.
• B) If individuals increase their savings rate,interest rates are likely to increase.
• C) If expected inflation increases,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:

BPC

Business Process Consulting, which involves helping organizations improve their efficiency and effectiveness through analyzing and redesigning business processes.

Supplier Relationships

The management of interactions and engagements between a company and the businesses that supply goods and services to it.

Internal Customer

An employee or department within an organization that receives goods, services, or information from another employee or department, as part of the company's internal processes.

Trends And Patterns

Observable and often quantifiable directions, behaviors, or occurrences within data or society over a period.