If Gus Believes Interest Rates Are Going to Fall in the near Future

question 27

Multiple Choice

If Gus believes interest rates are going to fall in the near future and remain low for several years,Gus should now

• A)invest in a variable-rate certificate of deposit.
• B)invest in a long-term, fixed-rate certificate of deposit.
• C)invest in a short-term, fixed-rate certificate of deposit.
• D)bury his money in fruit jars in the back yard.

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Definitions:

Critical Thinking

Involves the objective evaluation and formulation of arguments based on the assessment of facts and logic, instead of subjective opinion or biases.

Open-Mindedness

The willingness to consider new ideas, perspectives, and possibilities without prejudice.

Continuous Process

An ongoing operation or series of actions that proceed without interruption, often used in manufacturing or other systematic tasks.

Critical Thinking Model

A framework or methodology utilized to enhance the process of thinking critically by breaking down the process into distinct stages or components.