Finance companies would prefer to increase their long-term debt most once interest rates
A)have declined.
B)have increased.
C)were stable for several years.
D)were projected to decline.

Question

Quizplus · Accepted Answer

When interest rates have declined, it becomes more attractive to issue long-term debt as the cost of borrowing decreases. This allows finance companies to lock in lower rates for a longer period, which reduces their risk and can improve their profitability.

Finance Companies Would Prefer to Increase Their Long-Term Debt Most