Low Interest Rates

question 26

Multiple Choice

Low interest rates:

• A) increase the number of financial institutions.
• B) do not impact the supply of credit.
• C) increase the demand for lower-grade, riskier bonds.
• D) decrease employment opportunities.
• E) reduce asset prices in financial markets.

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Definitions:

Partnership

Business operation legally established for dual or multiple partners to govern and split profits.

Capital Account

In finance, it relates to a financial statement detailing the investment funds brought into and taken out of a company by its owners; in economics, it represents the part of the balance of payments recording net changes in a country’s foreign assets and liabilities.

Statement Of Partners' Equity

A financial document that shows changes in the equity interest of partners in a partnership over a period of time.

Partnership

A statutory business form that includes shared management responsibilities and profit distribution among several individuals.