Finra Exam Series-7 Topic 2 Question 1 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 1
Topic #: 2

[All Series-7 Questions]

Common stocks for which of the following industries are most likely to decline in value when interest rates rise?

Aautomobile manufacturers

Bairlines

Cstock brokers

Dpublic utility companies

Show Suggested Answer

Suggested Answer: D

public utility companies. Interest rates most affect the companies with the greatest amount of debt. Public utility companies are highly leveraged. Hence, they most likely incur the largest effect of rising interest rates.

by Salena at May 05, 2022, 10:24 PM

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