Transactions Are Typically Processed Either [A] All Together for a Defined

question 21

Multiple Choice

Transactions are typically processed either [A] all together for a defined time window (e.g.end of a day or week) or [B] processed as each transaction occurs.The second method [B] is called ________ processing.

• A)Batch
• B)Cluster
• C)Periodic
• D)Real-time

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Definitions:

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Pay Today

An immediate payment requirement, often referring to the upfront cost or investment needed in a transaction or financial deal.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of money over a period of time.

Nominal Annual Interest

Nominal annual interest is the stated interest rate associated with a loan or investment, not accounting for compounding or inflation effects within a specific year.