The value of a securities firm is typically ____ related to interest rate movements.
A)Positively
B)Not
C)Inversely
D)either Positively or Inversely , depending on the direction of the interest rate movements.

Question

The value of a securities firm is typically ____ related to interest rate movements.
A)Positively
B)Not
C)Inversely
D)either  Positively or Inversely , depending on the direction of the interest rate movements.

Quizplus · Accepted Answer

The value of a securities firm is typically inversely related to interest rate movements because as interest rates rise, the cost of borrowing increases, which can reduce the firm's profitability and the value of its securities.

The Value of a Securities Firm Is Typically ____ Related