The Minimum Rate of Return Used by an Investor to Bring

question 59

Multiple Choice

The minimum rate of return used by an investor to bring future cash flows to their present value is called:

• A)The investment rate.
• B)The prime rate.
• C)The discount rate.
• D)The present rate.

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Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when its resources are fully and efficiently utilized.

Trade

The exchange of goods, services, or both between two or more parties, either within an economy or between economies.

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prevailing prices.

International Trade

The exchange of goods and services across international boundaries or territories, involving the import and export of products.