An Increase in the Interest Rate Is an Increase in the Opportunity

question 7

True/False

An increase in the interest rate is an increase in the opportunity cost of consuming in the future.

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Definitions:

Return

The gain or loss of a security in a particular period, including any dividends or interest, expressed as a percentage of the investment's initial cost.

Pay

The act of giving money in exchange for goods, services, or to fulfill a financial obligation.

Mutual Fund

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.

Annual Return

The percentage gain or loss on an investment over a one-year period.