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Author Question: Some financial institutions offer continuous compounding. This means that A) your effective ... (Read 40 times)

sabina

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on: Jul 11, 2018
Some financial institutions offer continuous compounding. This means that
 
  A)
 
  your effective yield will be about 20 higher than daily compounding.
  B)
 
  your effective yield will be only slightly higher than daily compounding.
  C)
 
  in reality they are offering only simple interest.
  D)
 
  you must deposit at least 10,000 to open an account offering this feature.

Question 2

A real interest rate is the interest rate on a fixed-income security that has no risk in an economic
  environment of high inflation.
 
  Indicate whether the statement is true or false


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johnpizzaz

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Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

FALSE


sabina

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Reply #2 on: Jul 11, 2018
Thank you :)


johnpizzaz

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Reply #3 on: Jul 11, 2018
Happy to help you


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