Which of the Following Is a Common Reaction to a Decrease

question 22

Multiple Choice

Which of the following is a common reaction to a decrease in the interest rate?

• A) An increase in oil prices.
• B) A decrease in stock market prices.
• C) An increase in spending on new homes.
• D) An increase in military spending.
• E) An increase in federal highway spending.

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Definitions:

Premium

An amount paid for an insurance policy or the amount by which a bond or stock's price exceeds its face value.

Journal Entry

A record in financial accounting that documents a business transaction in the accounting records.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its official worth.

Quoted Price

The ongoing price tag attached to buying or selling a service or asset.