A $25 Investment Produces $27

question 23

Multiple Choice

A $25 investment produces $27.50 at the end of the year with no risk. Which of the following is not true?

• A) NPV is positive if the interest rate is less than 10%.
• B) NPV is negative if the interest rate is less than 10%.
• C) NPV is zero if the interest rate is equal to 10%.

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Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stable prices and exchange rates.

Consumer Faith

The confidence and trust that consumers have in the quality, safety, and reliability of the products and services they purchase.

Foreign Banks

Financial institutions based in one country but offering services in another, often playing significant roles in global finance and investment.

Civilian Conservation Corps

A New Deal program in the United States aimed at relieving unemployment during the Great Depression by providing conservation and infrastructure work for young men.