When Interest Rates Rise, Individuals Who Make Deposits Will Earn

question 53

Multiple Choice

When interest rates rise, individuals who make deposits will earn a ________ rate of interest, while individuals who need to borrow funds will have to pay a ________ rate.

• A) higher; lower
• B) lower; higher
• C) higher; higher
• D) lower; lower

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Definitions:

Negative Message

Communication that conveys bad news, rejection, or unfavorable information in a tactful manner.

Buffer

A neutral or positive statement designed to allow the writer to delay, or buffer, the negative message.

Goodwill

The value of a business beyond its tangible assets, including its reputation and patronage. Also, a favorable condition and overall atmosphere of trust that can be fostered between parties conducting business.

Negative Message

Communication that conveys a refusal, rejection, or other unfavorable information, often requiring careful wording to maintain goodwill.