Which of the Following Statements Is True

question 69

Multiple Choice

Which of the following statements is true?

• A) The longer the time period that funds are invested, the greater the future value, regardless of investment rate.
• B) The lower the discount rate that funds are invested at, the greater the future value.
• C) The shorter the time period that funds are invested, the greater the future value, regardless of investment rate.
• D) The higher the interest rate, the slower the value of an investment will grow.

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Definitions:

Customized Machine

A piece of equipment specifically designed and built to meet the unique requirements of a particular business or manufacturing process.

Operating

Pertains to the ongoing, day-to-day activities involved in running a business or an organization.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, used to determine how much tax will be owed on an additional dollar of income.

Operating Cash Flow

An indicator of the cash produced through a company's regular business activities.