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).

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Technical Skill

The ability and knowledge necessary to accomplish specific tasks, often relating to computational and physical technology.

Cognitive Ability

The capacity of an individual to perform various mental activities related to learning, problem-solving, decision-making, and similar intellectual functions.

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