Short-Term Interest Rates Are More Dependent Upon Inflation Than on Current

question 127

True/False

Short-term interest rates are more dependent upon inflation than on current demand for money.

---

Definitions:

Net Income

The amount of profit earned in a period after all expenses, taxes, and costs have been subtracted from total revenue.

Fixed Ratio

A financial metric that reflects the consistency of a company's financial performance by comparing various fixed costs to its total expenses.

Interest On Capital

The return on investment that is required or anticipated for the money or capital invested in a business or project.

Salary Allowances

Additional compensations over the base salary that may cover various specific needs or expenses.