In Which of the Following Situations Would It Not Be

question 77

Multiple Choice

In which of the following situations would it not be appropriate to use the following formula: when determining the present value (PV) of a cash flow stream?

• A)when yield curves are flat
• B)when short-term and long-term interest rates vary widely
• C)when the inflation rate is high
• D)when the discount rate is high
• E)when the real interest rate is high

---

Definitions:

Legislative

Relating to the branch of government responsible for making laws, or the process involved in creating legislation.

Federal Preemption

A legal doctrine allowing federal law to take precedence over conflicting state laws.

Literal Conflict

A situation where two or more laws, provisions, or legal texts directly contradict each other, making it impossible to comply with both simultaneously.

Persuasive Regulation

Regulations or guidelines that aim to influence behavior or decisions without imposing mandatory legal obligations.