You Are Expecting to Receive $1,000 at Some Time in the Future.Which

question 144

Multiple Choice

You are expecting to receive $1,000 at some time in the future.Which of the following would unambiguously decrease 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:

Mass Migration

Large-scale movements of people from one geographical location to another, often driven by factors such as conflict, natural disasters, or economic opportunities.

Foreign-born Immigrants

Individuals who were born outside of the country in which they currently reside, having moved from their country of origin.

Urban Population

The portion of a country's population that resides in cities and towns as opposed to rural areas.

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country outside of its home country.