Federal reserve will raise interest rates in near future

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Reference no: EM13737815

Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?

A. Because a rise in interest rates will cause bond prices to increase.

B. Because a rise in interest rates will depress current stock prices.

C. Because a rise in interest rates will make firm pay out more dividends.

D. Because the Federal Reserve regulates the interest rate paid by stocks.

Reference no: EM13737815

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