Asked by
Kalpana Jethi
on Nov 26, 2024
Verified
A firm will undertake investments as long as the expected rate of return is less than the interest rate.
Expected Rate of Return
The anticipated amount of profit or loss from an investment, considering the potential risks and rewards.
Interest Rate
The percentage at which interest is charged or paid on a loan or investment over a specific period of time.
- Understand the impact of interest rates on the availability of funds for lending and investment choices.
Verified Answer
BK
Learning Objectives
- Understand the impact of interest rates on the availability of funds for lending and investment choices.