A. Higher
B. Lower
C. Constant
D. None of These
Related Mcqs:
- Real interest rate and real cash flows do not include_____________?
A. Equity effects
B. Debt effects
C. Inflation effects
D. Opportunity effects - Interest rates, tax rates and market risk premium are factors which an/a_____________?
A. Industry cannot control
B. Industry cannot control
C. Firm must control
D. Firm cannot control - Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A. Diversifiable risk
B. Market risk
C. Stock risk
D. Portfolio risk - An inflation rate includes in bond’s interest rates is one which is inflation rate________?
A. At bond issuance
B. Expected in future
C. Expected at time of maturity
D. Expected at deferred call - Real risk-free interest rate in addition with an inflation premium is equal to_____________?
A. Required interest rate
B. Quoted risk-free interest rate
C. Liquidity risk-free interest rate
D. Premium risk-free interest rate - In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
A. No inflation
B. High inflation
C. No transactions
D. No acceleration - Real rate expected cash flows and nominal rate expected cash flows must be______________?
A. Accelerated
B. Equal
C. Different
D. Inflated - If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802 - In capital asset pricing model, stock with high standard deviation tend to have________?
A. Low variation
B. Low beta
C. High beta
D. High variation - If market interest rate rises above coupon rate, then bond will be sold_____________?
A. Equal to return rate
B. Seasoned price
C. Below its par value
D. Above its par value
The correct answer to the question: "When real rate is high, all the interest rates tend to be ___________?" is "Higher".
