If interest rates rise, the present value of any future earnings is bound to:

Related MCQs

• In a situation where share prices are generally depressed because long-term interest rates are expected to rise in future, a large firm looking for long-term finance would normally consider:
• For given change in interest rates, percentage change in present value of bond is classified as
• If the public debt can be financed without adding to inflation or causing interest rates to rise, it is said to be:
• ----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.”
• The reason that finding the present value of a future sum of money requires us to discount it, is that:
• A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
• If people are willing to lend at 7% when inflation is 2% and continue to lend the same amounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to:
• The ability of central banks to influence short-term interest rates rests upon:
• The authority which intervenes directly or indirectly in foreign exchange markets by Altering the interest rates is considered as
• Using a supply and demand framework, what is likely to happen to share prices in general if the central bank unexpectedly raises interest rates?