If People Expect Nominal Interest Rates to Be Lower in the Future

question 73

Multiple Choice

If people expect nominal interest rates to be lower in the future, the expected return on bonds ________, and the demand for money ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Statement of Functional Expenses

A financial report that shows how a nonprofit organization has spent its money on various functions, such as programs, administration, and fundraising.

Program Services Expenses

Costs directly related to the operational activities of a nonprofit organization, including expenses for its principal services offered to the community.

Supporting Services Expenses

Costs incurred by an organization, particularly in the nonprofit sector, that are necessary to support its main operational activities, including management, administrative, and fundraising expenses.

Statement of Activities

A financial report primarily used by non-profits, showing revenue and expenses over a period to reflect changes in net assets.