As the Interest Rate Falls,people Hold ________ Money Instead of Bonds

question 109

Multiple Choice

As the interest rate falls,people hold ________ money instead of bonds because the opportunity cost of holding money has ________.

• A)more; fallen
• B)less; fallen
• C)less; risen
• D)more; risen

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Net Capital

The total value of a company’s or individual's assets minus liabilities, representing the owner's equity or net worth.

Desirable Investment

An investment opportunity deemed attractive due to factors like potential for high returns, stability, or alignment with the investor's financial goals and risk tolerance.

Exchange Rate

How much one currency is worth in terms of a different currency.