Which Is the Best Definition of a Stated Interest Rate

question 5

Multiple Choice

Which is the best definition of a stated interest rate or quoted interest rate?

• A) The interest rate charged per period multiplied by the number of periods per year.
• B) An annuity for which the cash flows occur at the beginning of the period.
• C) A level stream of cash flows for a fixed period of time.
• D) The interest rate expressed as if it were compounded once per year.
• E) The interest rate expressed in terms of the interest payment made each period. Also, quoted interest rate.

---

Definitions:

Generalizability

The extent to which research findings and conclusions from a study conducted on a sample population can be applied to the population at large.

Ecological Reliability

The degree to which the results of a study or measurement are applicable or relevant to real-world conditions.

Internal Validity

The extent to which a research study can demonstrate a causal relationship between variables, free from confounding factors.

Generalizability

The extent to which findings from a study or research can be applied to broader populations or different contexts beyond the original conditions of the study.