John Gleason Is Interested in Purchasing a 46" Rear Projection

question 95

Multiple Choice

John Gleason is interested in purchasing a 46" rear projection TV for his living room.He knows that right now the TV will cost approximately $1500.John wants to borrow the money to purchase the TV but is a little concerned because he thinks interest rates are going to fall in the future.He is worried that he might get stuck with a loan at a high interest rate.What type of risk is John worried about?

• A)Inflation risk
• B)Interest rate risk
• C)Income risk
• D)Personal risk
• E)Liquidity risk

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Definitions:

Issued

Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.

Declared

Stated or made known officially or publicly.

Unit Of Account

A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.

Function

In mathematics, a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.