Why Would Asset Prices Tend to Move Inversely with Interest

question 21

Multiple Choice

Why would asset prices tend to move inversely with interest rates?

• A)their present value decreases as interest rates increase.
• B)their present value increases as interest rates increase.
• C)their past value decreases as interest rates increase.
• D)prices tend to move the same as interest rates.
• E)none of the above.

---

Definitions:

Calcium

A chemical element and an essential nutrient for living organisms, critical for bone health, muscle function, and nerve signaling.

Sodium

A chemical element (Na) that is an essential mineral for life, involved in nerve impulse transmission and muscle function.

Aerobic Respiration

The process by which cells convert glucose and oxygen into energy, carbon dioxide, and water, requiring oxygen to proceed.

Creatine Phosphate

A molecule that stores energy in muscle cells, releasing it quickly to produce ATP during intense physical activity.