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Basic Question 4 of 5

Interest rates tend to be higher in countries where there are high GDP growth rates because ______ in these countries.

A. investors save more
B. investors are more risk-averse
C. the opportunity cost of consuming today is low

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain the relationship between the long-term growth rate of the economy, the volatility of the growth rate, and the average level of real short-term interest rates;

CFA® 2025 Level II Curriculum, Volume 6, Module 37.