Which of the Following Bank Accounts Has the Highest Effective

question 166

Multiple Choice

Which of the following bank accounts has the highest effective annual return?

• A) An account that pays 8% nominal interest with daily (365-day)compounding.
• B) An account that pays 8% nominal interest with monthly compounding.
• C) An account that pays 8% nominal interest with annual compounding.
• D) An account that pays 7% nominal interest with daily (365-day)compounding.
• E) An account that pays 7% nominal interest with monthly compounding.

---

Definitions:

Immediate Hypersensitivity

A rapid allergic reaction that occurs within minutes of exposure to an allergen, mediated by IgE antibodies.

Chemical Mediators

Substances released by cells in the body that trigger inflammation, immune responses, or other physiological changes.

Quality Control

A process through which businesses seek to ensure that product quality is maintained or improved, preventing mistakes or defects in manufactured products.

Quality Assurance

The process of ensuring that products, services, or processes meet specific standards of quality through systematic activities and monitoring.