If Interest Rates Are Expected to ________, Mortgage Real Investment

question 7

Multiple Choice

If interest rates are expected to ________, mortgage real investment trusts (REITs) ___________.

• A)decline; become less attractive
• B)rise; become less attractive
• C)rise; are not affected
• D)decline; are not affected

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Definitions:

Federal Funds

Funds in a bank’s reserve account at the Federal Reserve Bank.

SEC Registration

The process by which securities are registered with the Securities and Exchange Commission, a requirement for securities to be legally sold to the public in the United States.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for financing short-term liabilities, with maturities ranging from a few days to 270 days.