If Interest Rates Rise

question 74

Multiple Choice

If interest rates rise:

• A)an investment in shares becomes relatively more attractive.
• B)an investment in shares becomes relatively less attractive.
• C)this does not change the attractiveness of investments in the share market.
• D)investors will respond by cutting back on investments in interest-earning assets such as government bonds.

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Definitions:

Safeguards

Measures implemented to protect against harm, damage, theft, or unauthorized access.

Federal

Relating to the central government of a federation rather than state, local, or provincial authorities.

State Courts

Judiciary bodies within individual U.S. states responsible for interpreting and applying state laws and constitutions.

Fourth Amendment

An amendment to the United States Constitution providing protection against unreasonable searches and seizures and requiring any warrant to be judicially sanctioned and supported by probable cause.