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Objective or External Factors That Can Be Seen or Felt

question 55

Multiple Choice

Objective or external factors that can be seen or felt by the practitioner or measured by an instrument are called ____.


Definitions:

Endowment Fund

A financial endowment given to institutions like universities, museums, and non-profits to invest and use the annual income from investments for operations or programs.

Perpetuity

A financial instrument that pays a steady, never-ending stream of cash flows to the investor.

Compounded Semi-Annually

A method where interest is added to the principal balance of an investment or loan twice a year, leading to compound growth.

Trust Fund

A legal entity that holds and manages assets on behalf of another, guided by the terms set forth in a trust agreement.

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