W hen interest rates decline, investors who want to earn a high return may ____ their investments in stock mutual funds and ____ their deposits in depository institutions.

Question

​W hen interest rates decline, investors who want to earn a high return may ____ their investments in stock mutual funds and ____ their deposits in depository institutions.

Quizplus · Accepted Answer

When interest rates decline, investors often seek higher returns than what is available from savings or fixed-income investments. As a result, they may increase their investments in stock mutual funds, which potentially offer higher returns, and reduce their deposits in depository institutions, where returns are directly affected by the lower interest rates.

​W Hen Interest Rates Decline, Investors Who Want to Earn

W Hen Interest Rates Decline, Investors Who Want to Earn