The Present Value of a Financial Asset Is

question 41

Multiple Choice

The present value of a financial asset is

• A)the most someone would be willing to pay upon maturity of the asset.
• B)the most someone would be willing to pay today for the asset.
• C)equivalent to the face value of the asset.
• D)the amount someone would pay in the future to have the asset today.
• E)the amount someone would pay in the future for the current stream of payments from the asset.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives such as those for food and sex.

Amygdala

A part of the brain's limbic system involved in emotion regulation, emotional learning, and the formation of memories associated with emotional events.

Convolutions

The folds or ridges on the brain's surface, increasing the brain's surface area and its ability to process information.

Fissures

Deep grooves or splits in tissues or organs, including those found in the brain which separate different lobes or areas.