Compounding refers directly to
a. finding the present value of a future sum of money.
b. finding the future value of a present sum of money.
c. changes in the interest rate over time on a bank account or a similar savings vehicle.
d. interest being earned on previously-earned interest.
d
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Exxon Mobil wants to pay 160,000 to a German supplier. They get an exchange rate quotation from its own commercial bank and instructs it to debit their dollar account and pay 160,000 to the supplier's German account
If the exchange rate quoted is $1.2 per euro, how much is debited to Exxon Mobil's account? A) $160,000 B) $172,000 C) $180,000 D) $192,000 E) $150,000
Notes are debt securities which have a maturity period of:
a. 0-5 years. b. 10-15 years. c. 0-1 year. d. 10-20 years. e. 1-10 years.
Which of the following most accurately indicates the implications of an economy's production possibilities curve?
a. If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. b. If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods. c. Over time, it is generally impossible for a country to expand its production of goods. d. An economy will automatically move toward a point that lies outside of the production possibilities curve unless proper government policy constrains production.