The Present Value of an Expected Future Payment ________ as the Interest

question 37

Multiple Choice

The present value of an expected future payment ________ as the interest rate increases.

• A)falls
• B)rises
• C)is constant
• D)is unaffected

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Definitions:

Transference

The process by which emotions, desires, or expectations are redirected and applied to a new object or person, often unconsciously and stemming from previous relationships.

Primacy Effect

The tendency to remember and give more weight to information that is encountered first in a series.

Recency Effect

The phenomenon where more recently presented information is better remembered and has a stronger influence on judgment than older information.

Transference

In psychotherapy, the phenomenon where patients project feelings or attitudes from past relationships onto the therapist.