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:

Security Breach

An incident that results in unauthorized access to data, applications, networks, or devices, potentially leading to the exposure of confidential information.

Insider

A person within an organization who has specialized knowledge or access to confidential information.

Credit Card Information

Personal and financial details associated with a credit card, including the card number, expiration date, and security code.

Phishing

A cyber-attack that uses disguised emails as a weapon to trick users into revealing personal information or downloading malware.