[Online Document Assignment:]
EIA Activity: Sixty Years of U.S. Interest Rates
Click on the links on the right to answer the following questions.
Use Link 1 to answer the following questions. True or False: Typically, 15-year fixed mortgage rates are lower than 30-year fixed mortgage rates.
| A. |
| B. |
True or False: Typically, 30-year jumbo mortgage rates are less than 30-year fixed mortgage rates.
| A. |
| B. |
True or False: Current one–year Certificate of Deposit (CD) interest rates are less than 5%.
| A. |
| B. |
True or False: Typically, five-year Certificate of Deposit (CD) interest rates are higher than one-year Certificate of Deposit (CD) rates.
| A. |
| B. |
True or False: A 60-month new car loan usually has a lower interest rate than a 48-month new car loan.
| A. |
| B. |
True or False: Variable interest rates on credit cards are higher than fixed interest rates on credit cards.
| A. |
| B. |
Have you ever financed anything before? If so, what? Explain.
Would you ever finance something interest free, or would you rather just pay cash if you could afford to? Explain.
Why do furniture stores and cell phone companies offer interest free financing? Explain.
Would a higher savings interest rate be an incentive for you to save more money? Explain.
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