If You Expect Interest Rates to Rise in the Future,which

question 141

Multiple Choice

If you expect interest rates to rise in the future,which type of mortgage loan (shown below) would you prefer?

• A)Graduated payment
• B)Adjustable rate
• C)Shared appreciation
• D)Fixed rate

---

Definitions:

Capital Consumption

The diminution of physical capital's value over time due to use, wear and tear, or obsolescence, also known as depreciation.

Private Capital Flows

Financial resources transferred from private entities in one country to private entities in another, typically through direct investment or loans.

Vicious Circle of Poverty

A self-perpetuating mechanism whereby poverty leads to conditions that perpetuate poverty, making it difficult to escape without external intervention.

Poor Nations

Countries characterized by low levels of income, economic development, and industrialization.