Which of the following changes in the financial market will lead to a decline in interest rates: a. a rise in demand b. a fall in demand c. a rise in supply d. a fall in supply

Let's analyze the possible scenarios and their effect on interest rates. a. A rise in demand: An increase in the demand for money would increase the price of borrowing money, which means interest rates are likely to increase. b. A fall in demand: A decrease in the demand for money would decrease the price of borrowing money, which means interest rates are likely to decrease. c. A rise in supply: An increase in the supply of money in the financial market would make money more affordable to borrow, which means interest rates are likely to decrease. d. A fall in supply: A decrease in the supply of money in the financial market would make money harder to borrow, which means interest rates are likely to increase.

By analyzing the effect of each scenario on interest rates, we can conclude that: a. A rise in demand would lead to an increase in interest rates. b. A fall in demand would lead to a decrease in interest rates. c. A rise in supply would lead to a decrease in interest rates. d. A fall in supply would lead to an increase in interest rates. Thus, the correct answer is: b. a fall in demand c. a rise in supply Both a fall in demand and a rise in supply will lead to a decline in interest rates within the financial market.