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.

---

Definitions:

Functionalism

A theoretical framework in sociology that emphasizes the interdependence of the parts of a society and their role in maintaining societal stability.

Absolute Poverty

A condition characterized by the severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.

Relative Poverty

A condition where people are considered poor relative to the living standards of the majority in the society they live in.

Economic Instability

A state where an economy experiences sharp fluctuations or a lack of steady growth, leading to uncertainty and potential financial crises.