Investment Decisions Are Based on the Trade-Off Between Which Two

question 29

Multiple Choice

Investment decisions are based on the trade-off between which two factors?

• A) The potential profit that could be generated by investment and the cost of borrowing money to finance the investment
• B) The interest rate that savers will earn and the interest rate that borrowers will have to pay
• C) The future value of the loan and the present value of the loan
• D) The potential profit that could be generated and the willingness of a lender to make the loan

---

Definitions:

Expiratory Reserve Volume (ERV)

The extra volume of air that can be forcefully expelled following the end of a regular, gentle breath out.

Functional Residual Capacity (FRC)

The volume of air present in the lungs at the end of passive expiration, an important measure in pulmonary physiology.

Expiratory Reserve Volume (ERV)

The additional amount of air that can be exhaled from the lungs after a normal exhalation.

Vital Capacity (VC)

The greatest volume of air that can be expelled from the lungs after taking the deepest possible breath; an important measurement in respiratory health.