If You Are Anticipating a Rising Interest Rate Environment, Your

question 68

Multiple Choice

If you are anticipating a rising interest rate environment, your planning and analysis of your loan and investment portfolio should focus on

• A) minimizing fixed rate investments and moving variable rate debt to fixed rate.
• B) investing in more fixed rate securities and moving variable rate debt to fixed rate.
• C) investing in preferred stock since the dividend rate is above the CD and bond interest rates.
• D) investing in CDs since they are insured by FDIC and minimizing borrowing.

---

Definitions:

Self-Determination Theory

A theory of motivation that emphasizes the role of psychological needs in the development of self-motivation and personality.

Self-Regulation

The ability to manage one's own behavior, emotions, and thoughts, aiming towards long-term goals and societal norms.

Prosocial Behavior

Doing something that is good for other people or for society as a whole.

Current Concerns

Issues or problems that are currently present and require immediate attention or consideration.