Question

If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings investments. a. True b. False

Answer 1

There are  interests rates in goods sold. If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings investments is a false statement.

Does a higher rate of money supply lower interest rates?

Note that larger money supply often lowers market interest rates, thereby making it much lower expensive for consumers to borrow.

Investment one should choose today if you believe interest rates will go up is Short-term savings instruments. This is because by investing money in short-term savings instruments, one's money can be available to invest in any kind of  higher interest instrument in the future.

Learn more about  interests rates from

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