As a Result of Compounding, the Effective Annual Rate on a Bank

question 139

True/False

As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or less than the nominal rate on the deposit (or loan).

---

Definitions:

Superego

In psychoanalytic theory, the part of the mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Rorschach Inkblot Test

A projective psychological test consisting of ten inkblots presented to a participant, aimed at analyzing personality characteristics and emotional functioning.

Objective Test

A type of test designed to assess an individual's knowledge or abilities in a specific area, using questions with fixed answers.

Gender-Typing

The process by which males and females come to display behavior patterns consistent with stereotypical masculine and feminine gender roles.