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Which One of the Following Statements Correctly States a Relationship

Question 17

Multiple Choice

Which one of the following statements correctly states a relationship?


A) Time and future values are inversely related, all else held constant.
B) Interest rates and time are positively related, all else held constant.
C) An increase in the discount rate increases the present value, given positive rates.
D) An increase in time increases the future value given a zero rate of interest.
E) Time and present value are inversely related, all else held constant.

Correct Answer:

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