The Effective Annual Rate Increases When the ________ Increases

question 68

Multiple Choice

The effective annual rate increases when the ________ increases.

• A)number of compounding periods in a year
• B)number of years invested
• C)quoted rate
• D)both A and C
• E)all of the above

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Definitions:

Fluid Abilities

Cognitive abilities involving the capacity to think logically and solve problems in novel situations, independent of acquired knowledge.

Creative Productivity

The capacity to generate original and valuable outcomes in artistic, scientific, or intellectual domains.

Novelist

An author or writer of novels, which are extended works of fiction.

Physicist

A scientist who specializes in the study of matter, energy, and the interaction between them.