Assume the current interest rate is 20%. The present value of $900 in one year would be
A. $180.
B. $450.
C. $750.
D. $1,080.
Answer: C
You might also like to view...
Which of the following is true about the United States?
A. There have been recessions approximately every ten years. B. The pattern of recessions does not occur on a regular basis. C. Periods of economic growth and recessions occur in two-year patterns. D. Recessions always last less than one year. E. Recessions in the United States are generally more severe than they are in other countries.
People hold money as an asset rather than other assets because
A) it holds its value. B) there is no cost to holding money as an asset. C) it grows in value. D) it is highly liquid.
In general, what is the final result of trade barriers?
What will be an ideal response?
Many used car owners and used car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper
The market for used cars could be described as A) relatively competitive. B) perfectly competitive. C) non-competitive. D) having high transaction costs.