Which of the Following Are Likely to Occur When Interest

question 48

Multiple Choice

Which of the following are likely to occur when interest rates rise sharply?

• A)Fixed-rate loans are pre-paid.
• B)Bonds are called.
• C)Deposits are withdrawn early.
• D)All of the above occur when interest rates rise sharply.
• E)a.and b.

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Definitions:

Debt

Money owed by one party to another under the condition that it will be paid back, often with interest.

Statute Law

Written laws enacted by a legislative body, governing various aspects of societal conduct.

Lesser Sum

Refers to an amount of money that is smaller in comparison to another figure or expectation.

Obliged

Required or bound legally or morally to do something.