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16 October, 13:41

Interest rates generally reflect

the potential elects of initation

the level of risk in an investment

the real value of the investment

the amount of money invested

+2
Answers (1)
  1. 16 October, 14:04
    0
    the level of risk in an investment

    Explanation:

    Interest rates show the percentage yield an investor will be gaining from undertaking a particular investment. All investments reward investors with regular returns that are expressed a percentage of the principal amount. The higher the returns, the more attractive the investment. Interest rates are the rewards or returns from an investment.

    A high-interest rate is also indicative of the risk associated with the investment. Generally, high-risk investments will offer a higher interest rate. Government bonds and treasury bills are the safest investment but offer lower interest rates. Corporate bonds are riskier but have high-interest rates.
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