a. The flight of funds from bank deposits to U.S. stocks will pressure interest rates. b. Since

Question:

a. "The flight of funds from bank deposits to U.S. stocks will pressure interest rates."

b. "Since Japanese interest rates have recently declined to very low levels, expect a reduction in U.S. interest rates."

c. "The cost of borrowing by U.S. firms is dictated by the degree to which the federal government spends more than it taxes."

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...