A Savings Institution's Cash Flows Are ____ Related to Interest

question 32

Multiple Choice

A savings institution's cash flows are ____ related to interest rate movements.

• A)positively related to
• B)negatively related to
• C)unrelated to
• D)none of the above

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Definitions:

Burden Of The Tax

The impact of a tax on the economic welfare of individuals, showing who ultimately bears the cost of the tax.

Excise Tax

A direct tax placed on manufactured goods, and is often levied at the time of manufacture, rather than at sale.

Inelastic Supply

A market condition where the quantity supplied of a good does not change significantly when its price changes.

Inelastic Demand

The case in which the price elasticity of demand is less than 1.