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Question
You are better off choosing $400 in 4 years rather than $300 today if the interest rate isa. lower than about 5.5 percent.
b. higher than about 5.5 percent.
c. lower than about 7.5 percent.
d. higher than about 7.5 percent.
Answer
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Related questions
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b. After selling stock, corporate management spends funds on projects with greater risks than shareholders had anticipated.
c. Instead of holding only the stocks of companies engaged in the banking business, a person decides to hold stock in a number of different companies producing different goods and services.
d. A person decides to purchase only stocks that have paid high dividends in the past.
Q:
Which of the following actions best illustrates adverse selection?
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c. After obtaining automobile insurance a person drives less carefully than before.
d. A person intending to take up dangerous hobbies applies for life insurance.
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Which of the following statements is correct?
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Suppose you place $500 into a savings account that will pay you 6% interest per year. What will be the future value of the savings account in 15 years?
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