Which of the following statements is most correct?
A)In reaction to the then developing 2007-2009 financial crisis, short-term interest rates declined sharply and were less than 100 percent by October, 2008.
B)In reaction to the then developing 2007-2009 financial crisis, short-term interest rates declined sharply and were less than 10 percent by October, 2008.
C)In reaction to the then developing 2007-2009 financial crisis, short-term interest rates declined sharply and were less than 5 percent by October, 2008.
D)In reaction to the then developing 2007-2009 financial crisis, short-term interest rates declined sharply and were less than .5 percent by October, 2008.
E)none of the above

Question

Quizplus · Accepted Answer

In response to the 2007-2009 financial crisis, short-term interest rates did decline sharply, and by October 2008 they were less than 0.5% (or .5%). Option D is the only answer option that accurately reflects this fact. Option A is incorrect because short-term interest rates were not less than 100%; rates would have been negative if they were less than 100% but they did not drop that much. Option B is incorrect because interest rates were not less than 10% either. Option C is incorrect because interest rates were not less than 5%.

Which of the Following Statements Is Most Correct