Changes in interest rates can typically affect firms in all of the following ways except:
A) The value of investments in bonds or other investment securities with fixed interest
Rates.
B) The value of liabilities with fixed interest rates.
C) The returns a firm generates from pension fund investments.
D) The cash-equivalent value of assets invested abroad.

Question

Quizplus · Accepted Answer

Changes in interest rates will not directly affect the cash-equivalent value of assets invested abroad, as this value is determined by exchange rates and other factors. However, changes in interest rates can indirectly affect the performance of these assets if they are linked to interest rates in some way (such as through interest rate differentials between countries).

Changes in Interest Rates Can Typically Affect Firms in All