When Interest Rates in the U

question 79

Multiple Choice

When interest rates in the U.S. increase, we can expect NCO to:

• A) decrease, because capital inflow is increasing.
• B) increase, because capital inflow is increasing.
• C) decrease, because capital outflow is increasing.
• D) increase, because capital outflow is increasing.

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Definitions:

Debt Financing

Raising capital through borrowing money that must be repaid over time, typically with interest.

Startup Company

A newly established business, often in the tech or innovation sectors, that aims to meet a marketplace need by developing a viable business model around a product, service, platform, or idea.

Commercial Finance Companies

Financial institutions that provide loans to businesses using accounts receivable, inventory, equipment, and property as collateral.

Assets

Economic resources or valuable items that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits.