Which of the Following Is Likely to Happen to Short-Term

question 35

Multiple Choice

Which of the following is likely to happen to short-term and long-term interest rates during recessions?

• A)The short-term interest rates rise during recessions but the long-term interest rates fall during recessions.
• B)The short-term interest rates fall during recessions but the long-term interest rates rise during recessions.
• C)Both the short-term and the long-term interest rates fall during recessions.
• D)Both the short-term and the long-term interest rates rise during recessions.

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Definitions:

War Zone

An area where armed conflict is taking place, often recognized as such by military authorities.

Killed

The action of causing the death of a living entity, whether intentionally or unintentionally.

Duty

An obligation or responsibility to act in a certain way, often imposed by law, social norms, or professional standards.

Double Indemnity

A clause in a life insurance or accident policy that entitles the beneficiary to receive twice the face value of the policy in the event of accidental death.