Economics & AnalysisPregunta 13 de 110
Under the time value of money, which factor increases the future value of a single deposit?
a.A shorter investment horizon
b.A higher interest rate compounded over more periods
c.A lower rate of compounding
d.More frequent withdrawals
Explicación
Future value grows with higher interest rates and more compounding periods, because each period's interest earns further interest. Shorter horizons and lower rates reduce future value. Withdrawals reduce the balance that can compound.
Practica las 110 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- An investor earns a 12% nominal return in a year when inflation is 4%. Using the approximate method, the real return is closest to which of the following?
- Which measure best captures the total percentage gain from an investment, including both price change and reinvested income?
- The Consumer Price Index (CPI) is primarily used to measure which of the following?
- A yield curve that slopes downward, with short-term rates higher than long-term rates, is described as which of the following?
- Which statement about the Sharpe ratio is correct?
- An analyst using fundamental analysis of a common stock would most likely focus on which of the following?
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con NASAA Series 65 Investment Adviser Law Exam · Cómo revisamos