At any fixed interest rate, an increase in time, n, until a payment is made:
A. affects only the future value.
B. reduces the present value.
C. has no impact on the present value since the interest rate is fixed.
D. increases the present value.
Answer: B
You might also like to view...
What is one difference between stocks and bonds?
A) Bonds are purchased at a bank, while stocks are purchased through the federal government. B) Bonds earn a higher rate of return than stocks. C) Stocks earn a higher rate of return than bonds. D) Stocks represent partial ownership in a firm, while bonds do not.
Complete Milton Friedman's famous proposition: "Inflation is always and everywhere a ________ phenomenon."
A) monetary B) political C) policy D) budgetary
To answer the question, refer to the following table showing a demand schedule: 
If price falls from $200 to $150, what is the elasticity of demand over this range?
A. -2.5 B. -3.0 C. -1.0 D. -0.62 E. -1.17
A decrease in stock prices alters the consumption function by:
A. decreasing the vertical intercept. B. decreasing the slope. C. increasing the vertical intercept. D. increasing the slope.