Which of the Following Statements Is CORRECT,assuming Positive Interest Rates

question 32

Multiple Choice

Which of the following statements is CORRECT,assuming positive interest rates and holding other things constant?

• A) The present value of a 5-year,$250 annuity due will be lower than the PV of a similar ordinary annuity.
• B) A 30-year,$150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
• C) A bank loan's nominal interest rate will always be equal to or greater than its effective annual rate.
• D) If an investment pays 10% interest,compounded quarterly,its effective annual rate will be greater than 10%.
• E) Banks A and B offer the same nominal annual rate of interest,but A pays interest quarterly and B pays semiannually.Deposits in Bank B will provide the higher future value if you leave your funds on deposit.

Comprehend the alignment model's integration with followership characteristics.

Identify Moyers' ten basic responsibilities of nonprofit chief executives.

Understand the importance of leadership personality in matching organizational missions.

Comprehend the responsibilities of a nonprofit chief executive officer, including board member selection.

---

Definitions:

Average Cost

A measure of the total cost of production divided by the number of units produced, used to calculate the cost per unit.

Industry Demand

The total demand for the products or services provided by a specific industry, represented as the sum of individual demands within a market.

Perfect Competition

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to efficient pricing and output decisions.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to high control over market prices.