Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) The future value of an annuity would be greater if funds are invested at the beginning of each period instead of at the end of each period.
• B) An annuity is a series of equal payments that are made, or received, forever.
• C) The effective annual rate (APR) of a loan is higher the less frequently payments are made.
• D) The future value of an annuity would be greater if funds are invested at the end of each period rather than at the beginning of each period.

---

Definitions:

Long-term Memory

The phase of memory responsible for the storage of information over extended periods, potentially as long as a lifetime.

Disequilibrium Principle

The state of imbalance or disequilibrium in an eco-system or in a market, which can lead to significant shifts or adjustments within that system.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Law of Effect

A psychological principle suggesting that behaviors followed by positive outcomes are likely to be repeated, while those with negative outcomes are not.