The relationship between interest rates and equity prices
Credit market sectors
The discount rate
1. Which is usually more important as an influence on the economy and equity prices as described in the text?
A. The level of short-term rates
B. The level of long-term rates
C. The rate of change of short-term rates
D. The rate of change of long-term rates
2. True or false: Changes in the primary trend of short-term interest rates have led every stock market bottom between 1921 and 2009.
3. Changes in interest rates have an influence on stock prices because:
A. Credit market instruments represent competition for equity money.
B. Stocks are often bought ...