Because of an expected rise in interest rates in the future, a banker will likely

Because of an expected rise in interest rates in the future, a banker will likely

A) make long-term rather than short-term loans.
B) buy short-term rather than long-term bonds.
C) buy long-term rather than short-term bonds.
D) make either short or long-term loans; expectations of future interest rates are irrelevant.

Answer: The correct answer is buy short-term rather than long-term bonds.

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