Stock Prices May Rise from a Reduction in Interest Rates

question 98

Multiple Choice

Stock prices may rise from a reduction in interest rates because:

• A)The present value of future earnings will increase
• B)Stockholders will expect lower future earnings
• C)Financial market participants are less optimistic about future earnings
• D)The present value of future earnings will decrease

---

Definitions:

Cost-Per-Action

An online advertising payment model where payments are based solely on qualifying actions such as sales or registrations.

Conversion Rate

A metric that measures the percentage of visitors who take a desired action, indicating the effectiveness of a marketing strategy or webpage.

Performance Measure

Quantitative or qualitative indicators used to evaluate the effectiveness, efficiency, and quality of an organization's activities or employee's work.

Social Networks

Platforms and websites that enable users to create and share content or to participate in social networking.