The Effective Interest Rate Generally Is ________

question 157

Multiple Choice

The effective interest rate generally is ________.

• A) higher on a loan if interest is paid at maturity
• B) lower if the loan is a discount loan
• C) higher if the loan is a discount loan
• D) not affected by whether the loan is a discount loan or a loan with interest paid at maturity

---

Definitions:

Permafrost

Permanently frozen layer of soil and rock occurring beneath the Earth's surface.

Biome

A large naturally occurring community of flora and fauna occupying a major habitat, e.g., forest or tundra.

Arctic Circle

The most northerly of the five major circles of latitude that mark maps of the Earth, defining the boundary of the Arctic region.

Conifers

Trees and shrubs that bear cones and typically have needle-shaped or scale-like leaves, such as pines and cedars.