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The one rate that truly represents the interest earned in a year is the annual effective yield. (or effective annual interest rate). True False Market

The one rate that truly represents the interest earned in a year is the annual effective yield. (or effective annual interest rate).

True

False

Market interest rates are supposed to reflect any anticipated changes in earning power as well as purchasing power in the economy.

True

False

When you pay cash for a car, you lose the opportunity to earn interest on the money you spend.

True

False

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