You Are Expecting to Receive $3,500 at Some Time in the Future.Which

question 60

Multiple Choice

You are expecting to receive $3,500 at some time in the future.Which of the following would unambiguously increase the present value of this future payment?

• A)Interest rates rise and you get the payment sooner.
• B)Interest rates rise and you have to wait longer for the payment.
• C)Interest rates fall and you get the payment sooner.
• D)Interest rates fall and you have to wait longer to get the payment.

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Definitions:

Termination Benefits

Payments or other benefits provided to employees as compensation for their dismissal or for voluntary separation under conditions specified by the employer.

Withdraw The Offer

The act of revoking or cancelling a proposal or bid that had previously been made.

Present Obligation

A current duty or responsibility that an entity has as a result of past events, which will likely require an outflow of resources.

Restructuring

The process of organizing a company or its operations differently to increase efficiency or improve profitability, often involving changes in business model, operations, or staff.