Increases in Interest Rates

question 85

Multiple Choice

Increases in interest rates

• A)reduce borrowers' net worth.
• B)reduce lenders' net worth.
• C)increase the present value of borrowers' assets.
• D)raise the cost to businesses of internal funding.

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Definitions:

Cued Recall

A memory recall process where prompts are given to aid the retrieval of information.

Savings

The portion of income not spent on consumption but reserved for future use; in psychology, it also refers to the reduction in time or effort to relearn a previously learned task.

Sequentially

In a sequential order or manner, where events, processes, or items follow one after another in a logical sequence.

Suspects

Individuals believed to possibly be involved in committing a crime or wrongdoing, but not yet proven guilty.