Real Assets Often Increase in Value When

question 26

Multiple Choice

Real assets often increase in value when:

• A)higher levels of inflation are anticipated.
• B)the stock market is advancing.
• C)the public is confident about world events.
• D)bond prices are advancing.

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Definitions:

Junk Bonds

High-risk, high-yield bonds issued by companies with lower credit ratings, reflecting a greater risk of default but offering higher returns to compensate investors.

Real Estate Prices

The amount of money required to purchase ownership or rental rights to land and buildings.

Bank Interest Rates

The percentage charged on loans or paid on savings by banks to customers.

Short-Term Business Loans

Loans provided to businesses for immediate operational needs with repayment terms typically less than one year.