Question

What is the expected impact of liquidity conditions on interest rates?

a.

Liquidity conditions are expected to ease, leading to lower interest rates

b.

Liquidity conditions are expected to remain tight, putting pressure on interest rates

c.

Liquidity conditions have no impact on interest rates

d.

Interest rates are expected to remain stable regardless of liquidity conditions

Answer: (b).Liquidity conditions are expected to remain tight, putting pressure on interest rates Explanation:Fund managers expect liquidity to remain tight, putting pressure on interest rates.

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Q. What is the expected impact of liquidity conditions on interest rates?

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