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(a) money may flow from bond market to stock market(b) corporate houses can borrow at easy terms(c) investors can invest with borrowed funds(d) all of these
(e) Non of these
Answer D is correct because all of the above are the result of low interest rate for bonds market.
the answer is (d) because a ow interest rate will discourage investment at risk-free (bond) market and of course, it will lower the finance cost burden for the corporate sector and in the final case it may generate excess returns for the investors whose borrowing costs are less.
A decrease in interest rates will prompt investors to move money away from the bond market to the equity market.
Although the relationship between the two if fairly indirect, they tend to move in opposite direction.
d - All of the above .........................
Answer is D all the the options
(d) >>>>>>>all of these<<<<<<<<<
It is Option C.........( Cost of Funds will fall and investor can borrow funds @ low rates)
D)---------------------------------------------------------------
all of these to be honest. People will sell their bonds and buy shares in companies having potential of outstanding performances.in relation to this co. Can also borrow at lower rates to invest in high earning projects considering the debt is cheap source of finance.
(a) money may flow from bond market to stock market
Answer d
All of answers are good
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