The Cost of Money Is Above All Else a Function

question 98

Multiple Choice

The cost of money is above all else a function of

• A)interest rates.
• B)risk.
• C)exchange rates.
• D)rate of return.

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Definitions:

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Future Value

The amount of money an investment is expected to grow to over a period at a specified rate of interest or return.

Interest Factors

Mathematical factors used to calculate the future or present value of cash flows based on an interest rate.