The Present Value of a Future Payment Increases If The

question 11

Multiple Choice

The present value of a future payment increases if the:

• A)period between the present and the future increases.
• B)future payment decreases.
• C)interest rate decreases.
• D)stock market falls.

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Definitions:

Heritable

Traits or characteristics that can be passed from parents to their offspring through genes.

Selection

The process by which certain traits become more or less common in a population due to their impact on the reproductive success of their bearers.

Directional Selection

A form of natural selection in which individuals with traits on one end of the spectrum are more likely to survive and reproduce, leading to an overall shift in the population.

Stabilizing Selection

An evolutionary process that favors the average variants in a population, leading to a decrease in diversity for the trait in question.