An Increase in Which One of These Is Most Apt

question 67

Multiple Choice

An increase in which one of these is most apt to decrease the nominal interest rate?

• A)Liquidity
• B)Interest rate risk
• C)Default risk
• D)Expected future inflation
• E)The relevant tax rate

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Definitions:

Government

The system or group of people governing an organized community, often a state, and managing its affairs and resources.

Taxable Income

Taxable income is the portion of an individual's or corporation's income used to determine how much tax will be owed to the government.

Tax Revenues

The money obtained by governments as a result of taxation.

Borrowing

The act of obtaining or receiving something on loan with the promise or understanding of returning it or its equivalent.