MCQOPTIONS
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| 1. |
Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one: |
| A. | Effective rate > Nominal rate |
| B. | Effective rate < Nominal rate |
| C. | Effective rate = Nominal rate |
| D. | None of the above |
| Answer» B. Effective rate < Nominal rate | |