Which Statement Is True

question 93

Multiple Choice

Which statement is true?

• A)All else equal, an ordinary annuity is more valuable than an annuity due.
• B)All else equal, a decrease in the number of payments increases the future value of an annuity due.
• C)An annuity with payments at the beginning of each period is called an ordinary annuity.
• D)All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity.
• E)All else equal, an increase in the number of annuity payments decreases the present value and increases the future value of an annuity.

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Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Projective Test

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual’s personality.

Thematic Apperception Test

A projective psychological test where individuals are presented with ambiguous pictures and asked to create stories, revealing their underlying motives, feelings, and attitudes.

Validity

Refers to the degree to which a test or instrument measures what it claims to measure.