Which of the Following Is NOT a Reason That Interest

question 128

Multiple Choice

Which of the following is NOT a reason that interest rates remained low despite high budget deficits following the financial crisis?

• A) increased demand for U.S. government bonds
• B) the perceived riskiness of alternative investments such as stocks
• C) low interest rates on corporate bonds and similar short-term assets
• D) increases in expected inflation

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Definitions:

Physical

Relating to the body as opposed to the mind or emotions, or pertaining to material things rather than spiritual ones.

Cognitive

Relating to the mental processes of perception, memory, judgment, and reasoning.

Psychosocial

Pertaining to the influence of social factors on an individual's mind or behavior, and the interrelation of behavioral and social factors.

Heredity

The genetic transmission of physical or mental traits from one generation to the next.