Choose the Statement That Is Incorrect

Multiple Choice

Choose the statement that is incorrect.

A) Stocks, bonds, short-term securities, and loans are financial assets.
B) The interest rate on a financial asset is the interest received expressed as a percentage of the price of the asset.
C) If the asset price rises, other things remaining the same, the interest rate falls.
D) Insolvency can arise from a previously unexpected large rise in the interest rate.
E) The price of an asset is determined first, then the interest rate is determined.