CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Consider the following statements.

I. A real risk-free interest rate will result in real growth in GDP.
II. A real risk-free interest rate will result in more volatility in real GDP growth.
A. Only statement I is true.
B. Only statement I is true.
C. Neither statement is true.
Explanation: Statement I is false. The opposite is true; an increase in real GDP growth will result in a higher real risk-free interest rate.

Statement I is also false. The opposite is true; an increase in the volatility of real GDP growth will result in a higher risk-free interest rate.

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