You Are Expecting to Receive $750 at Some Time in the Future.Which

question 132

Multiple Choice

You are expecting to receive $750 at some time in the future.Which of the following would unambiguously increase the present value of this future payment?

• A) Interest rates rise and you get the payment sooner.
• B) Interest rates rise and you have to wait longer for the payment.
• C) Interest rates fall and you get the payment sooner.
• D) Interest rates fall and you have to wait longer to get the payment.

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Definitions:

Solvent

A substance, usually a liquid, capable of dissolving other substances (solutes) to form a solution.

Melting Point

The point at which a solid transitions into a liquid under the conditions of atmospheric pressure.

Brønsted-Lowry

A theory in chemistry that defines acids as proton donors and bases as proton acceptors.

Functional Groups

Functional groups are specific groups of atoms within molecules that are responsible for the characteristic chemical reactions of those molecules.