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A Rational Individual Would Rather Receive $1,000 Today Than Receive

question 51

True/False

A rational individual would rather receive $1,000 today than receive $1,100 in one year if the applicable nominal interest rate was 12%.


Definitions:

Truth-In-Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about terms and costs.

Retail Installment Sale

A transaction where the buyer pays for goods in regular installments while the seller retains ownership until the full price has been paid.

Food And Drugs

Pertains to the regulation and oversight of the production, distribution, and safety of food products and pharmaceuticals.

Consumer Product Safety Commission

A U.S. government agency responsible for protecting the public from unreasonable risks of injury or death associated with consumer products.

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