Which of the Following Interest Rates Will Be Most Affected

question 59

Multiple Choice

Which of the following interest rates will be most affected by a shift to a more restrictive monetary policy?

• A)rate on a 30-year home mortgage
• B)rate on a 20-year Treasury bond
• C)rate on a 10-year bank loan
• D)rate on a three-month certificate of deposit

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Definitions:

Ambidexterity

The ability to be equally proficient in using both the right and left hands, or the capacity of an organization to innovate while also maintaining efficiency in existing operations.

Innovation

The process of creating new ideas, products, or methods, which improve upon the existing standards and contribute to progress.

Survival

The act of continuing to live or exist, often despite hardship or danger.

Formalization

The extent to which an organization uses rules, procedures, and standardized processes to govern behaviors and decisions within the organization.