The Present Discounted Value of a Future Payment Becomes Smaller

question 8

Multiple Choice

The present discounted value of a future payment becomes smaller when

• A)the nominal interest rate decreases.
• B)the payment is made sooner rather than later.
• C)the payment itself decreases.
• D)all of the above
• E) none of the above

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Definitions:

Nonverbal Communication

The process of conveying a message without the use of words, through body language, facial expressions, gestures, and posture.

Feedback

The ongoing process in which participants and their messages create a given result and are subsequently modified by that result.

Eye Contact

The act of two individuals looking into each other's eyes, which can communicate various messages and emotions.

Self-Disclosure

The act of revealing personal information about oneself to others, which can foster intimacy, trust, and stronger interpersonal relationships.