You Are Determining the Significance of the Following: You Set

question 37

Multiple Choice

You are determining the significance of the following: you set a 5% risk of assessing control risk to low and your computation of the upper deviation risk is 7%.What could you conclude?

• A)There is a 95% chance the deviation rate is the population is less than 5%.
• B)There is a 5% chance the deviation rate in the population is less than 7%.
• C)There is a 95% chance the deviation rate in the population exceeds 95%.
• D)There is a 5% chance the deviation rate in the population exceeds 7%.

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Definitions:

Effective Usury Laws

Regulations that set maximum interest rates on loans, intended to protect consumers from exorbitant or predatory lending rates.

Loanable Funds

The supply of financial resources available for lending, determined by savings and demand for borrowing.

Future Value

The value of an investment or payment at a specified future date, considering interest or growth rates.

Compound Interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, where interest in one period earns interest in subsequent periods.