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.

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