If the Interest Rate Falls, You Would Expect the Price

question 2

Multiple Choice

If the interest rate falls, you would expect the price of any stock to

• A) rise.
• B) fall.
• C) be unaffected.
• D) fall to zero.

---

Definitions:

Cash Flows

The total figure of money being moved into and extracted from a business, critically affecting its liquid assets.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage.

Cash Flow Growth Rate

A measure of how fast a company's cash flow increases over a certain period, indicating financial health.

Timeframe

A timeframe refers to the specific period during which an event occurs or is planned to take place, often used in planning and scheduling contexts.