Because of an Expected Rise in Interest Rates in the Future,a

question 75

Multiple Choice

Because of an expected rise in interest rates in the future,a banker will likely

• A)make long-term rather than short-term loans.
• B)buy short-term rather than long-term bonds.
• C)buy long-term rather than short-term bonds.
• D)make either short or long-term loans;expectations of future interest rates are irrelevant.

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