Which of the Following Would NOT Explain Why Managers Track

question 79

Multiple Choice

Which of the following would NOT explain why managers track interest rates?

• A) High interest rates make the cost of capital cheaper for a firm.
• B) High interest rates could delay a firm's expansion.
• C) Low interest rates make it easier for a firm to borrow money.
• D) Low interest rates increase market demand and economic growth.

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Definitions:

Corporate Governance

A system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of a company's stakeholders.

Chief Executive Officer

The Chief Executive Officer (CEO) is the highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.

Fabricated

Something that is made up or constructed; often referring to information or data that is falsely created or manipulated.

Profit Statement

A financial document detailing a company's revenues, expenses, and net profit over a specific period.