All of the Following Are Factors That Influence Interest Rates

question 46

Multiple Choice

All of the following are factors that influence interest rates for individual securities except ________.

• A) The security's term to maturity
• B) Inflation
• C) Special provisions regarding the use of funds raised by a particular security issuer
• D) The home mortgage rate

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Definitions:

Price Level

A metric that represents the median of present prices for all types of goods and services in the economy.

Future Expectations

The anticipations or outlook that consumers and businesses have about economic conditions that affect their spending and investment decisions.

Deferring Consumption

The act of postponing spending money on consumption goods to save or invest for future use.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specific period.