FIN MISC

Test Bank for Financial Markets and Institutions 5th Edition Saunders, Cornett Last document update:   ago

1. The real interest rate is the increment to purchasing power that the lender earns in order to induce him or her to forego current consumption. True False 2. If you earn 0.5% a month in your bank account, this would be the same as earning a 6% annual interest rate with annual compounding. True False 3. Simple interest calculations assume that interest earned is never reinvested. True False 4. An investor earned a 5% nominal rate of return over the year. However, over the year, prices ...