If Mortgage Interest Rates Increase, This Would Be an Example

question 86

Multiple Choice

If mortgage interest rates increase, this would be an example of changing ________ conditions in a firm's external environment.

• A) economic
• B) political
• C) sociocultural
• D) financial

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Definitions:

Actuarial Calculations

Mathematically based evaluations of insurance and finance risks, primarily used in the insurance industry and pension fund management.

Assumed Investment Rate

The projected rate of return assumed for a hypothetical investment over a specific period.

Annuity Cost

The initial investment or premium required to purchase an annuity, which in return provides periodic payments for a specified period or for life.

Pretax Return

The financial return on an investment before any taxes are deducted.