As a Result of Compounding, the Effective Annual Rate on a Bank

question 139

True/False

As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or less than the nominal rate on the deposit (or loan).

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Definitions:

Counselor

A professional who provides guidance, advice, or therapy to individuals or groups to promote mental health, emotional well-being, and personal growth.

Insight Therapies

A group of psychotherapies in which verbal interactions are intended to enhance clients’ self-knowledge and thus promote healthful changes in personality and behavior.

Behavior Therapies

The application of the principles of learning to direct efforts to change clients’ maladaptive behaviors.

Biomedical Therapies

Medical treatments for mental health disorders that involve medication, surgery, or other physiological interventions.