Which of the Following Statements Is TRUE

question 49

Multiple Choice

Which of the following statements is TRUE?

• A) In an annuity due payments occur at the end of the period.
• B) In an ordinary annuity payments occur at the end of the period.
• C) A perpetuity will mature at some point in the future.
• D) One cannot calculate the present value of a perpetuity.

---

Definitions:

National Saving

The total amount saved by a country's economy, calculated as the sum of private and public savings, often representing the difference between national income and consumption.

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or migration.

Closed Economy

An economic system that does not engage in international trade with outside countries and relies wholly on its own resources.

Loanable Funds

The funds available for borrowing in the financial markets, consisting of savings and sometimes bank loans that are available to be lent to businesses and individuals.