What Is London's Origin as a World Financial Center

question 29

Multiple Choice

What is London's origin as a world financial center?

• A) military power of British Empire in the nineteenth century
• B) influence of royalty on the city's reputation
• C) rule over several former American colonies
• D) prestige of the London Stock Exchange

---

Definitions:

Effective Annual Rate

The interest rate on an investment or loan that accounts for the effect of compounding over a one-year period.

Retirement Supplement

Additional income or benefits provided to individuals upon retirement, often as part of pensions or savings plans.

Savings

Money set aside, usually in secure or low-risk accounts, for future use or emergencies, contributing to financial stability.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, influencing investment decisions and valuation.