If Interest Rates Rise, the Price of Preferred Stock

question 60

Multiple Choice

If interest rates rise, the price of preferred stock

• A)rises
• B)falls
• C)is not affected
• D)rises or falls

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Definitions:

Economic Recovery

The period in which an economy rebounds from a recession or downturn, generally marked by an increase in GDP, employment, and consumer spending.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, a U.S. law that raised import tariffs on thousands of goods, contributing to the severity of the Great Depression.

International Trade

The exchange of goods, services, and capital across international borders or territories.

Tariffs

Taxes imposed on imported goods to increase their cost, typically used to protect domestic industries or earn revenue for the government.