You Are Scheduled to Receive $10,000 in One Year

question 33

Multiple Choice

You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the present value of this cash flow?

• A) It will cause the present value to fall.
• B) It will cause the present value to rise.
• C) It will have no effect on the present value.
• D) The effect cannot be determined with the information provided.

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Definitions:

Intellectual Deficit

A condition marked by below-average intellectual function and a lack of skills necessary for daily living, previously known as mental retardation.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and personal beliefs.

Cognitive Development

involves the mental processes related to acquiring knowledge and comprehension, including thinking, knowing, remembering, and problem-solving.

Social Development

The process by which individuals learn the values, norms, and behaviors required to interact effectively within their society.