Which of the Following Is True with Regard to Rising

question 59

Multiple Choice

Which of the following is true with regard to rising interest rates?

• A) Use short-term loans to take advantage of low interest rates.
• B) Select long-term savings options to lock in current interest rates.
• C) Use long-term loans to take advantage of current low rates.
• D) The term of the loan option is not affected by rising interest rates.

---

Definitions:

Tax Revenues

The money obtained by governments as a result of taxation.

Borrowing

The act of obtaining or receiving something on loan with the promise or understanding of returning it or its equivalent.

Social Security Benefits

Payments made to eligible individuals, typically retirees or disabled workers, provided through a government system funded by payroll taxes.

Payroll Tax

Charges implemented on employers or their workforce, typically based on a proportion of the salaries paid to employees.