Which One of the Following Conditions When Combined with Long-Term

question 181

Multiple Choice

Which one of the following conditions when combined with long-term, fixed-rate, low interest loans would tend to increase the financial risk of lending institutions the most?

• A) Volatile short-term rates that are relatively low.
• B) Volatile short-term rates that are relatively high.
• C) Fixed short-term rates that are relatively low.
• D) Volatile long-term rates that are relatively low.
• E) Fixed long-term rates that are relatively low.

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Definitions:

Primary Purposes

The main reasons or objectives for which something is done, such as informing, persuading, entertaining, or expressing feelings.

Inform

Inform means to provide information or knowledge to someone, making them aware of something.

Persuade

To influence someone to do or believe something through reasoning, argumentation, or appeal to their emotions or values.

Sales Growth

The increase in sales over a specific period, indicating the expansion of a business's revenue-generating capabilities.