Which of the Following Best Describes the Annual Percentage Rate

question 13

Multiple Choice

Which of the following best describes the annual percentage rate?

• A) the quoted interest rate which, considered with the compounding period, gives the effective interest rate
• B) the effective annual rate, after compounding is taken into account
• C) the discount rate, when compounded more than once a year or less than once a year
• D) the discount rate, when effective annual rate is divided by the number of times it is compounded in a year

---

Definitions:

Functional Autonomy

A concept in psychology suggesting that motivations in an adult's life can become independent of their origins and exist for their own sake.

Addictions

Compulsive engagement in rewarding stimuli, despite adverse consequences, often leading to a loss of control over the behavior.

Repetitive Actions

actions or behaviors that are performed repeatedly, often as a part of a routine or compulsive behavior in various psychological conditions.

Central Traits

Essential characteristics that form the basis of an individual’s personality and are usually evident in their behavior.