Because the Nominal Interest Rate Is Always Positive, the Discount

question 44

Multiple Choice

Because the nominal interest rate is always positive, the discount factor is always:

• A) zero.
• B) one.
• C) negative.
• D) greater than one.
• E) less than one.

---

Definitions:

Oldest Seafloor

The parts of the oceanic crust that are the most aged, often farthest from mid-ocean ridges where new crust is formed.

Oceanic Trench

Deep, narrow depressions in the ocean floor, formed by the subduction of one tectonic plate beneath another.

Seismic-Reflection Profiling

A geophysical method for exploring Earth's subsurface by reflecting seismic waves off underground layers and interpreting the echoes received.

Sound Waves

Vibrations that travel through the air or another medium, perceivable as sounds when they reach a human or animal ear.