The Future Value of a Deposit in a Savings Account

question 181

Multiple Choice

The future value of a deposit in a savings account will be larger

• A)the longer a person waits to withdraw the funds.
• B)the higher the interest rate is.
• C)the larger the initial deposit is.
• D)All of the above are correct.

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Definitions:

Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific period.

National Debt

National debt is the total amount of money that a country's government has borrowed, typically as a result of budget deficits, through the issuance of securities like government bonds.

Annually Balanced Budget

A budgeting approach where the government's projected revenues and expenditures are equal within a one-year period.

Countercyclical

Economic policies or measures intended to mitigate the effects of recessions by stimulating economic activity during downturns.