If a bank compounds savings accounts monthly, the effective annual rate is greater than the nominal rate. True or false ?

The major advantage of a partnership as a form of business organization is the fact that it pays no corporate taxes, whereas the S corporation does.

True

False

Which of the following statements is correct?

		Generally, periodic rate is stated in contracts, and quoted by banks and brokers.
		Periodic rate (iper) = nominal rate (inom) / m, where m is the number of years.
		The effective annual rate might be equal to the annual nominal rate in some special situations.
		Nominal rate is generally used in calculations and shown on times.