If the Return on Assets Is Positive, an Increase in Total

question 8

Multiple Choice

If the return on assets is positive, an increase in total assets will result in

• A) an increase in the return on assets.
• B) a decrease in the return on assets.
• C) no change in the return on assets.
• D) the effect cannot be determined.

---

Definitions:

Exchange Rate

The price of one country’s currency in terms of another currency.

Inflation Rate

The tempo at which the universal price levels of goods and services advance, impairing the ability to buy.

Finnish Security

A financial investment like stocks, bonds, or other assets originating from Finland or issued by Finnish entities.

Real Rate

The real rate is the rate of interest an investor expects to receive after allowing for inflation, essentially reflecting the real cost of funds to the borrower and the real yield to the lender.