Which of the Following Is True of the Future Value

question 70

Multiple Choice

Which of the following is true of the future value of an investment?

• A) The higher the interest rate, the higher the future value of an investment.
• B) The higher the inflation rate, the lower the future value of an investment.
• C) The lower the number of compounding periods, the higher the future value of an investment.
• D) The lower the present value of an investment, the higher the future value of an investment.

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Definitions:

Note

A promise by the maker of the note to pay the payee of the note.

Reasonable Identification

The process of sufficiently identifying an individual through the use of valid and reliable means or documents.

Fraud In The Factum

A liability defense available to a party who signs a negotiable instrument without knowing that it is a negotiable instrument.

Negotiable Instrument

A written assurance for the remittance of a fixed sum of money, payable either on demand or at a future date, with the document clearly stating the name of the individual making the payment.