A Seismograph

question 47

Multiple Choice

A seismograph

• A)predicts earthquakes.
• B)measures ground movement.
• C)helps prevent earthquakes.
• D)measures fault displacement.

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Definitions:

Present Value

The current estimation of a future financial sum or series of payments, when discounted at a specific rate of return.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the central bank's discount window; also used in discounted cash flow (DCF) analysis to present value future cash flows.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity and financial stability.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal sum each month, leading to an increase in the total amount of interest earned.