Capital Is A(n) ____ Variable and Investment Is A(n) ____

question 217

Multiple Choice

Capital is a(n) ____ variable and investment is a(n) ____ variable.

• A)physical, financial 
• B)stock, flow 
• C)asset, liability 
• D)flow, stock

---

Definitions:

Stated Interest Rate

The interest rate that is agreed upon in the loan document, which does not account for compounding.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Impaired Note

A note receivable that has a reduced likelihood of being collected in full due to deterioration in the financial condition of the borrower.

Present Value

The present value of a sum of money or series of cash flows expected in the future, calculated using a specified discount or interest rate.