Which One of the Following Statements Concerning Interest Rates Is

question 53

Multiple Choice

Which one of the following statements concerning interest rates is correct?

• A)The stated rate is the same as the effective annual rate.
• B)An effective annual rate is the rate that applies if interest were charged annually.
• C)The annual percentage rate increases as the number of compounding periods per year increases.
• D)Banks prefer more frequent compounding on their savings accounts.
• E)For any positive rate of interest, the effective annual rate will always exceed the annual percentage rate.

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Definitions:

Longitudinal Study

A research method that involves repeated observations of the same variables over short or long periods of time.

Arranged Marriages

Marital unions where the partners are selected by individuals other than the ones getting married, often by family members.

Love Marriages

denote marital unions based primarily on romantic love between partners, as opposed to arranged marriages.

Consummate Love

Sternberg argues that this is the ultimate form of love, involving passion, intimacy, and commitment.