Which One of the Following Statements Concerning Interest Rates Is

question 20

Multiple Choice

Which one of the following statements concerning interest rates is correct?

• A)The stated rate is the same as the annual percentage rate.
• B)An annual percentage rate is the rate that applies if interest were charged annually.
• C)The annual percentage rate increases as the number of compounding periods per year
• Increases.
• D)Banks prefer more frequent compounding on their savings accounts.
• E)For any positive rate of interest, the annual percentage rate will always exceed the stated
• Interest rate.

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Definitions:

Woody

Describes plant stems and structures that are hard and fibrous, typically found in trees and shrubs.

Basal Angiosperms

Three clades of angiosperms that are thought to be ancestral to all other flowering plants. Compare with core angiosperms.

Core Angiosperms

A group within the angiosperms (flowering plants) that includes most of the common and well-known flowering plants.

Amborella Trichopoda

A flowering plant species considered to be among the most primitive of living angiosperms, providing insights into the early evolution of flowering plants.