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Earn +20 ptsQ: How does simple and compound interest affect the result of your investment exercise?
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Continue Learning about Math & Arithmetic
Decreasing the number of times an investment is compounded in a year does not affect the dollar amount in the account?
False
Increasing the number of times an investment is compounded in a year does not affect the dollar amount in the account?
False
How does amortization of the principal balance affect the amount of interest expense recorded each succeeding year?
reduces the amount of interest expense each succeeding year
How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
Interest groups are also called pressure groups mainly because?
They seek to put pressure on the government to affect political policies
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