If interest rates increase, the prices of bonds and preferred stock increase.
举一反三
- According<br/>to the expectations hypothesis, an upward-sloping yield curve implies<br/>that ________ A: interest<br/>rates are expected to remain stable in the future. B: interest<br/>rates are expected to decline in the future. C: interest<br/>rates are expected to increase in the future. D: interest<br/>rates are expected to decline first, then increase. E: interest<br/>rates are expected to increase first, then decrease.
- According to the pure expectations theory, an upward-sloping yield curve implies: A: interest rates are expected to decline in the future. B: interest rates are expected to increase in the future. C: longer-term bonds are riskier than short-term bonds.
- An increase in the capital stock causes labor productivity to ( ) A: decrease and the standard of living to increase. B: increase and the standard of living to increase. C: decrease and the standard of living to decrease. D: increase while the standard of living remains constant.
- Which of the following statements related to preferred stock are correct? I. Preferred stock pays a constant dividend. II. Preferred stock is generally the cheapest source of capital for a firm. III. A decrease in the market value of preferred stock will increase a firm's weighted average cost of capital. IV. An increase in the rating of a preferred stock will increase the cost of preferred. A: II and III only B: I and IV only C: I and III only D: II and IV only E: I, III, and IV only
- An increase in the capital stock causes labor productivity to ( ) A: decrease the standard of living to increase. B: increase and the standard of living to increase. C: decrease and the standard of living to decrease.<br/>D<br/>increase while the standard of living remains constant. D: increase while the standard of living remains constant.