Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A) The present value of a future sum decreases as the discount rate increases.
• B) If the present value of a sum is equal to its future value, the interest rate must be zero.
• C) If the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the present value of the same series.
• D) For a given APR, the present value of a future sum decreases as the number of discounting periods per year decreases.

Understand the impact of stock splits on value-weighted indexes.

Recognize the largest actively-traded stock indexes and their attributes.

Calculate after-tax rates of return for municipal and corporate bonds given specific tax brackets.

Understand how Treasury bond prices are quoted and calculate the price expected to pay.

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Definitions:

Pan-

A prefix meaning "all" or "every," used to indicate inclusiveness or universality.

Sub-

A prefix indicating beneath, under, or a lower rank or status.

Poly-

A prefix meaning "many" or "multiple," used in various scientific and technical contexts to denote multiplicity.

Blast

A powerful explosion or a strong gust of wind or air.