Given an Interest Rate of Zero Percent, the Future Value

question 23

Multiple Choice

Given an interest rate of zero percent, the future value of a lump sum invested today will always:

• A)remain constant, regardless of the investment time period.
• B)decrease if the investment time period is shortened.
• C)decrease if the investment time period is lengthened.
• D)be equal to $0.
• E)be infinite in value.

---

Definitions:

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.

Behavioral Activation System

A psychological concept referring to the brain system that regulates pursuit of rewards, motivating approach behaviors.

Gray's Reinforcement Sensitivity Theory

A theory that suggests differences in an individual's sensitivity to reward and punishment motivate differences in personality, behavior, and psychopathology.

Basis of Personality

The underlying factors or elements that dynamically shape an individual's character and behavior.