Which of the Following Is Not True of Low Interest

question 159

Multiple Choice

Which of the following is not true of low interest rates?

• A)It encourages investors to search out investments like high-dividend stocks.
• B)It encourages the substitution of debt for equity.
• C)Low interest rates have increased the supply of credit.
• D)Low rates penalize savers.
• E)Low rates may discourage paying down the national debt.

---

Definitions:

Alveoli

Tiny air sacs within the lungs where the exchange of oxygen and carbon dioxide takes place.

Capillaries

Tiny blood vessels that form a network to exchange oxygen, carbon dioxide, and other substances between blood and tissues.

Glottis

The opening between the vocal cords in the larynx, through which air passes during respiration and which is used in producing vocal sounds.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, which closes over the windpipe during swallowing to prevent food from entering the airways.