Everything Else Equal, If You Expect a Larger Interest Rate

question 41

Multiple Choice

Everything else equal, if you expect a larger interest rate increase than other market participants, you should ________.

• A)buy long-term bonds
• B)buy short-term bonds
• C)buy common shares
• D)buy preferred shares

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Definitions:

Competitive Behavior

Actions and strategies adopted by firms to outperform competitors and achieve market dominance.

Ethical Behavior

Conduct that is consistent with principles of moral integrity, respect, and fairness in professional and personal settings.

Consumer Bill of Rights

A set of principles established to protect consumers in the marketplace, ensuring fair trade practices and product safety.

Ethics of Exchange

The moral principles that guide conduct and decisions in situations involving trading and transactions between parties.