Consider two investments of the same horizon, each with a future value of $2,000. Interest rate R1 gives a present value $700 and interest rate R2 gives a present value of $500. What interest rate is largest? A. Interest R2 B. There is not enough information to answer the question C. Interest R1 = Interest R2 D. Interest R1

What is one of the most common ways mutual funds generate revenue? A. Earning interest spread from paying short term depositors and charging interest to long term borrowers B. Underwriting stock offerings C. Creating exotice derivative products D. Charging expenses for managing funds and trading fees