A Higher Interest Rate (Discount Rate) Would

question 82

Multiple Choice

A higher interest rate (discount rate) would

• A) reduce the price of corporate bonds.
• B) reduce the price of preferred stock.
• C) reduce the price of common stock.
• D) all of these options are true.

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Definitions:

Motivational Arousal

The level of psychological activation or energy that prompts an organism to engage in behavior directed towards achieving a specific goal.

Physiological State

The condition of the body's internal biological functions and processes at a specific time.

Drive-reduction Theory

A motivational theory that posits that psychological needs create an aroused tension state (a drive) that motivates an organism to satisfy the need, thereby reducing the tension.

Nutritionally Poor

Describes food that lacks in essential nutrients needed for maintaining healthy bodily functions.