Holding All Else Constant,when Interest Rates Fall

question 40

Multiple Choice

Holding all else constant,when interest rates fall,

• A) yields on common stocks rise above yields on bonds.
• B) yields on common stocks fall below yields on bonds.
• C) yields on common stocks and bonds rise at an equal rate.
• D) yields on common stocks and bonds fall at an equal rate.

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Definitions:

Locus of Control

Locus of control is a psychological concept that refers to individuals' belief about the extent to which the outcomes of their actions are under their own control (internal locus) or influenced by external factors (external locus).

Reinforcement Contingency

Reinforcement contingency is a term in behavioral psychology that refers to the relationship between a behavior and its consequence, emphasizing that a behavior must be followed by a reinforcement for the behavior to be increased.

Internal

Pertaining to or situated within something; often refers to phenomena or processes occurring within an organism or object.

External

Originating from outside, not confined within an entity or individual.