Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) The process of moving a value or cash flow backward in time is known as discounting.
• B) FV =
• C) The process of moving a value or cash flow forward in time is known as compounding.
• D) The value of a cash flow that is moved forward in time is known as its future value.

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Definitions:

Hang Seng

A market index that represents the performance of the largest companies listed on the Hong Kong Stock Exchange.

Callable Bond

A type of bond that can be redeemed by the issuer before its maturity date, typically at a premium price.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Yankee Bond

A bond issued in the United States by foreign banks and corporations, denominated in U.S. dollars.