As the inflation rate increases, Blank______. Multiple choice question. the risk-free rate decreases the required rate of return decreases the risk-free rate increases the discount rate increases

Assuming an inflationary economy, the future value interest factor is O always greater than 1.0. O always uncertain. O always equal to 1.0. O always less than 1.0.

dont use chatgpt answer The present value of a future amount: a. will always be less than the future amount b. can be calculated precisely if the discount rate and number of periods is known c. is worth less than the future value d. both a. and b. above are true

The _______ models the relationship between inflation rate, nominal return, and real return. Multiple Choice   Interest Rate Parity.   Put-Call Parity.   Fisher Effect.   Law of One Price.   Purchasing Power Parity.

The future value of a single sum   A. is generally larger than the present sum.   B. decreases as the number of periods increases.   C. does not depend upon the number of periods.   D. decreases as the interest rate increases.

Which of the following statements correctly describe how the present value of a future expected cash flow may vary with different factors? Group of answer choices A. More than one of the other options are correct. B. As the expected loss of purchasing power due to inflation increases, then, holding all else constant, the present value of a future expected cash flow will decrease. C. As the period of time we have to wait until we receive a future expected cash flow decreases, then, holding all else constant, the present value of the cash flow will decrease. D. As the risk associated with a future expected cash flow increases, then, holding all else constant, the present value of the cash flow will increase.

If the Fed ____ the interest rates when inflationary expectations remain unchanged, the most likely result is that the value of dollar will ____ and the economy may ____. A. increases; appreciate; weaken B. decreases; appreciate; weaken C. increases; depreciate; strengthen D. decreases; appreciate; strengthen

Which of the following statements is/are false, all else the same? 1. Present values increase as the discount rate increases. II. Present values increase the further away in time the future value. III. Present values are always smaller than future values when both rand t are positive.

Which of the following is true about Interest Rate? i. The Fisher Effect illustrates the positive relationship between inflation and nominal interest rates. ii. APR will always be greater than the EAR. iii. We can find the nominal interest rate by adding the default and maturity premiums to the sum of the real rate and inflation. O A. ii and i only O B. i and ii only OC. i only O D. i, ii, and iii

When the quantity of a financial security supplied or demanded changes at every given interest rate in response to a change in a factor, this causes a shift in the supply or demand curve true or false ?