A Change in the Interest Rate

question 88

Multiple Choice

A change in the interest rate:

• A)Has a smaller impact on the present value of a payment to be made far into the future than on one to be made sooner
• B)Will not make a difference in the present values of two equal payments to be made at different times
• C)Has a larger impact on the present value of a payment to be made far into the future than on one to be made sooner
• D)Has a larger impact on the present value of a bigger payment to be made far into the future than on one of lesser value

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Definitions:

Phloem

The plant's vascular system responsible for moving sugars and other substances produced during metabolism from the leaves downward.

Springwood

The portion of a tree's annual growth ring that is formed in the early part of the growing season, characterized by larger and less dense cells than those produced later in the season.

Conducting Cells

Cells in plants that form the tubes for transporting water, minerals, and nutrients, namely xylem and phloem cells.

Sieve Tubes

A series of tube-like structures found in plants that are part of the phloem and responsible for transporting sugars and other organic nutrients.