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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Definitions:

Hypothyroidism

A condition in which the thyroid gland is underactive and produces insufficient amounts of thyroid hormones.

Heart Disease

A range of conditions that affect the heart, including blood vessel diseases, heart rhythm problems, and heart defects.

Hyperkalemia

A condition characterized by abnormally high levels of potassium in the bloodstream.

Potassium

A chemical element with symbol K and atomic number 19, vital for nerve function, muscle contraction, and maintaining fluid balance in the body.