Question
Which of the following statements is correct, assuming positive interest rates and holding other things constant? Banks A and B offer the same annual rate
Which of the following statements is correct, assuming positive interest rates and holding other things constant?
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| Banks A and B offer the same annual rate of interest, but A pays interest quarterly and B pays semiannually. A deposit in Bank B will have a higher value in five years. |
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| Banks A and B offer the same nominal annual rate of interest, but A pays interest daily and B pays semiannually. A deposit in Bank B will have a higher value in five years. |
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| Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays monthly. A deposit in Bank B will have a higher value in five years. |
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| Banks A and B offer the same nominal annual rate of interest, but A pays interest weekly and B pays quarterly. A deposit in Bank B will have a higher value in five years. |
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Man Of The Futures The Story Of Leo Melamed And The Birth Of Modern Finance
Authors: Leo Melamed
1st Edition
0857197487,0857197495
