The value of a securities firm is typically ____ related to interest rate movements
A) positively
B) not
C) inversely
D) A or B

Question

Quizplus · Accepted Answer

The value of a securities firm is typically inversely related to interest rate movements. When interest rates rise, the value of fixed income securities held by the firm (such as bonds) decreases, which can lead to a drop in the firm's overall value. Conversely, when interest rates fall, the value of those securities increases, which can boost the firm's overall value.

The Value of a Securities Firm Is Typically ____ Related