Which of the Following Statements Is Correct

question 68

Multiple Choice

Which of the following statements is correct?

• A) A 15-year mortgage will have larger monthly payments than a 30-year mortgage.
• B) If an account earns 3% per year compounded annually, then it also has an effective annual rate (EAR) of 3%.
• C) The present value of a $500 perpetuity is greater if the interest rate is higher.
• D) Statements a, b and c are correct.
• E) Only statements a and b are correct.

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Definitions:

Internal Locus

A belief that one controls their own destiny and outcomes are the result of personal efforts.

Looking-Glass Self

The self you assume others see when they look at you.

Outgoing Personality

A trait characterized by being open, talkative, sociable, and comfortable in interacting with others.

Daniel Yankelovich

A prominent American social scientist known for his work in public opinion research and public policy.