Four Banks Are Offering the Same Interest Rate of 4

question 14

Multiple Choice

Four banks are offering the same interest rate of 4%.Where do you invest?

• A) Bank A compounds interest on a yearly basis.
• B) Bank B compounds interest on a monthly basis.
• C) Bank C compounds interest on a daily basis.
• D) I am indifferent between banks.

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Definitions:

Positive Correlation

A statistical relationship where two variables move in the same direction, indicating that when one variable increases, the other one also increases, and vice versa.

Risk Mitigation Plan

A strategic approach to identifying, analyzing, and responding to project risks to minimize their impact.

Risk Transfer Plan

A strategy to shift potential risks to a project to another party, usually through insurance or contracts, as a way to mitigate negative impacts.

Risk Acceptance Plan

A strategy where potential risks are acknowledged but deemed manageable or low enough to proceed without additional mitigation measures.