If the interest rate is positive, the present value of $10 to be received in the future is
A. less than $10.
B. equal to $10.
C. more than $10.
D. Any of the above is possible, depending on the interest rate and when the payment is to be received.
Answer: A
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When a bank pays a check drawn on a customer's account to another bank, the bank loses
A) capital equal to the amount of the check. B) capital equal to the required reserve ratio times the amount of the check. C) reserves equal to the amount of the check. D) reserves equal to the required reserve ratio times the amount of the check.
Refer to the accompanying figure. The equilibrium price is ________, and the equilibrium quantity is ________.
A. $4; 6 B. $8; 6 C. $6; 4 D. $2; 8
If a market reflects a shortage and prices are allowed to move:
A) supply will increase. B) demand will decrease. C) price will decrease. D) price will increase.
Which of the following can directly affect the value of a household’s real wealth in the short run?
a. average wages for workers b. consumer confidence c. the performance of the stock market d. consumer preferences