Most Economic Historians Believe That

question 45

Multiple Choice

Most economic historians believe that:

• A)If more countries would have been on the gold standard the Great Depression would have been averted
• B)The gold standard didn't play a major role in the Great Depression
• C)The gold flows played a central role in spreading the Great Depression
• D)Countries that held on to the gold standard recovered from the Great Depression the quickest

Calculate the effective annual rate (EAR) for different compounding frequencies.

Determine the number of payments or the duration required to repay a loan under various interest rates and compounding periods.

Identify the necessary rate of return to meet a specific financial goal.

Compare different investment or loan options based on their effective interest rates or returns.

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Definitions:

Indifferent

A state of having no preference between two or more outcomes; neutrality in preference.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Future Value

The amount of money in the future that an amount of money today will yield, given prevailing interest rates

Risk-averse Individuals

People who prefer to avoid risk and would rather accept a lower expected return on an investment than subject themselves to higher volatility and potential loss.