Examlex

Solved

A 4-Month Guaranteed Investment Certificate with a Face Value of $55,000

question 23

Multiple Choice

A 4-month Guaranteed Investment Certificate with a face value of $55,000 will have a maturity value of $56,100. What simple annual interest rate is it carrying?


Definitions:

Preferences

Individual choices or priorities that influence decision-making in various situations.

Behavioral Economists

Scholars who study the psychological, social, cognitive, and emotional factors affecting the economic decisions of individuals and institutions.

Status Quo Bias

The tendency most people have when making choices to select any option that is presented as the default (status quo) option. Explainable by prospect theory and loss aversion.

Anchoring

A cognitive bias in decision-making where individuals rely too heavily on an initial piece of information (the "anchor") when making judgments.

Related Questions