__________ reflect(s) the cost of borrowing money: Higher interest rates make money more expensive to borrow.
A) The leading economic indexes
B) The consumer confidence indexes
C) Exchange rate trends
D) Interest rate forecasts

Question

Quizplus · Accepted Answer

Interest rates directly reflect the cost of borrowing money. When interest rates are higher, it becomes more expensive to borrow money, and when they are lower, it becomes cheaper to borrow money. Therefore, interest rate forecasts are the best choice as they directly indicate the cost of borrowing money. The other options (A, B, and C) are not directly related to the cost of borrowing money.

__________ Reflect(s) the Cost of Borrowing Money: Higher Interest Rates