'Lots of People Are Saying There Is Going to Be

question 28

Multiple Choice

'Lots of people are saying there is going to be a huge shake-up and that half of those in Finance are going to lose their jobs.' This is most likely a statement of:

• A) feeling.
• B) fact.
• C) folklore.
• D) fantasy.
• E) both fact and folklore.

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Definitions:

Standard & Poor's

A financial market intelligence company known for its stock market indices such as the S&P 500, as well as its credit ratings of borrowers.

Liquidity Preference Theory

A theory that suggests investors demand a higher interest rate or premium on securities with longer maturities to compensate for the increased risk of holding them.

Term Structure

The relationship between interest rates or bond yields and different terms to maturity, represented graphically by the yield curve.

Interest Rates

The amount charged by lenders as a percentage of the amount borrowed, representing the cost of borrowing money.