Examveda
Examveda

Decrease in present value at decreasing rate only when

A. increase in availability

B. decrease in availability

C. interest rate decrease

D. interest rate increases

Answer: Option D

Solution(By Examveda Team)

Decrease in present value at decreasing rate only when interest rate increases. This is because a higher interest rate means you would have to set less aside today to earn a specified amount in the future.

This Question Belongs to Management >> International Finance And Treasury

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