If a Voluntary Trade Takes Place

question 54

Multiple Choice

If a voluntary trade takes place,

• A)both parties will benefit from the transaction.
• B)only one party will benefit from the transaction.
• C)neither party will benefit from the transaction.
• D)both parties will benefit only if the government regulates the transaction.

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Definitions:

Present Value

The existing value of a future amount of money or series of payments, factoring in a chosen rate of return.

Beginning of Every Quarter

This refers to the start of each three-month period in a year, often used in financial contexts for reporting and interest calculation.

Annuity

A financial service that offers a continual payment stream to its holder, primarily aimed at funding the post-retirement life of individuals.

Compounded Semiannually

Interest that is calculated and added to the principal twice a year, leading to interest on interest.