An Increase in Interest Rates Results in A(n)________ in the Required

question 78

Multiple Choice

An increase in interest rates results in a(n) ________ in the required rate of return to hold stocks and ________ current stock prices.

• A)increase; reduces
• B)increase; raises
• C)decrease; raises
• D)decrease; reduces

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Definitions:

Profit Sharing

A form of compensation whereby a percentage of company profits is distributed to the employees whose work helped generate them.