Which is not true about Cap rates?

Question

Quizplus · Accepted Answer

The statement "Rising interest rates generally tends to lower cap rates" is not true. In fact, rising interest rates tend to increase cap rates because they make financing more expensive, reducing the value of the property and increasing the required rate of return for investors. The other statements are generally true – excess supply and falling interest rates tend to lower cap rates, while excess demand tends to lower cap rates as investors are willing to pay more for a property.

Which Is Not True About Cap Rates