The present value of $1,000 to be received one year from now
A. is always $1,100.
B. is always $1,000.
C. is always $900.
D. cannot be determined without knowing the interest rate.
Answer: D
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If interest rates go down, which of the following would most likely occur:
A. Banks will pay more to borrow money. B. The stock market will go up. C. Consumers will spend less. D. U.S. exports will decrease.
Alan could most directly apply the principles of economic decision making with respect to his job when:
A. deciding how to spend his paycheck. B. deciding which girl to marry. C. deciding what to have for dinner after a long day at work. D. deciding which route on his way to work is the most scenic.
Most of the Fed's assets are held in the form of loans to its member banks
a. True b. False Indicate whether the statement is true or false
Price controls are used to ______.
a. alter the natural market equilibrium price b. prevent changes to the natural market equilibrium price c. reduce government influence on the natural market equilibrium price d. eliminate taxes at the natural equilibrium price