The Present Discounted Value of a Future Payment Will Decrease

question 126

True/False

The present discounted value of a future payment will decrease when interest rates decrease.

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Definitions:

Intellectual Disability

A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Savant Syndrome

A condition in which a person with significant mental disabilities demonstrates certain abilities far in excess of average.

Flynn Effect

The Flynn Effect describes the observed rise over time in standardized intelligence test scores, suggesting that average IQ scores increase from one generation to the next.