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:

Technological Control

The use of technology to monitor, manage, or influence the behavior and performance of individuals or systems.

Armrests

Structural components on chairs, seats, or other furniture designed to provide support and comfort for the arms.

Discourages Napping

Refers to practices or policies that deter or reduce the opportunity for taking short sleeps or rest periods during work or activity hours.

Complex System

A system composed of interconnected parts that as a whole exhibit one or more properties (behavior among the parts) that are not obvious from the properties of the individual parts.