Which of the following statements is most correct regarding the general relationship between stocks and interest rates?

Question

Quizplus · Accepted Answer

Generally, as interest rates increase, the cost of borrowing money increases, which can reduce company profits and ultimately lead to lower stock prices. Additionally, higher interest rates can make fixed-income securities like bonds more attractive to investors, potentially reducing demand for stocks. However, it's important to note that there may be other factors influencing stock prices beyond interest rates.

Which of the Following Statements Is Most Correct Regarding the General