Lower interest rates
A)Lower the present value of future payments.
B)Raise the future value of current dollars.
C)Reflect a lower opportunity cost of money.
D)Reflect a higher opportunity cost of money.

Question

Quizplus · Accepted Answer

Lower interest rates reflect a lower opportunity cost of money because it costs less to borrow money, indicating that the return on investment for alternative uses of the money is also lower.

Lower Interest Rates