If You Are Anticipating a Rising Interest Rate Environment, Your

question 68

Multiple Choice

If you are anticipating a rising interest rate environment, your planning and analysis of your loan and investment portfolio should focus on

• A) minimizing fixed rate investments and moving variable rate debt to fixed rate.
• B) investing in more fixed rate securities and moving variable rate debt to fixed rate.
• C) investing in preferred stock since the dividend rate is above the CD and bond interest rates.
• D) investing in CDs since they are insured by FDIC and minimizing borrowing.

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Definitions:

Thyroxine (T4) Level

A measurement of the concentration of thyroxine, a hormone produced by the thyroid gland, in the bloodstream.

Thyroid Gland

An endocrine gland located in the neck, producing hormones that regulate metabolism, energy generation, and overall growth and development.

Parathyroid

Small glands located behind the thyroid which produce parathyroid hormone, involved in calcium regulation.

Vertebra Prominens

The most prominent vertebra in the neck, easily felt through the skin, typically the seventh cervical vertebra (C7).