One of the Characteristics of Financial Repression Is

question 15

Multiple Choice

One of the characteristics of financial repression is

• A)negative real interest rates.
• B)lack of credit rationing.
• C)capital flowing to the highest rate of return.
• D) all of the above.
• E) none of the above.

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Definitions:

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Portfolio Risk

The degree of uncertainty of returns on a portfolio due to the possibility of changes in the values of the holdings.

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Portfolio Beta

A measure of a portfolio's sensitivity to market movements, indicating its volatility relative to the market.