Which of the following is a FALSE statement?
A) Future values and interest rates move in the same direction.
B) The EAR is generally less than the nominal or quoted rate of interest.
C) Compounding means earning interest on interest.
D) Future values decrease with decreases in interest rates
Correct Answer:
Verified
Q2: If an investor is indifferent between $1.00
Q3: Opportunity cost is the:
A)benefit that would have
Q4: If an investor prefers the present value
Q5: Holding all other variables constant, an increase
Q6: The principle behind time value of money
Q11: If the present value of a given
Q13: Effective annual rates decrease as _ decrease:
A)annual
Q16: Which of the following would increase the
Q17: The present value of an amount can
Q18: The present value of the cash flows
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