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

Question

Quizplus · Accepted Answer

When interest rates fall, the value of existing long-term fixed-rate investments increase as new investments are made at a lower rate. Therefore, it would be a wise decision to invest in long-term fixed-rate savings investments if one believes that interest rates will decrease in the future.

If One Believes Interests Rates Will Move Lower in the Months