Question: For a given EFFECTIVE ANNUAL INTEREST RATE, the NOMINAL or QUOTED ANNUAL INTEREST RATE ________ as the compounding frequency INCREASES. a. Does NOT change b.

For a given EFFECTIVE ANNUAL INTEREST RATE, the NOMINAL or QUOTED ANNUAL INTEREST RATE ________ as the compounding frequency INCREASES. a. Does NOT change b. INCREASES c. DECREASES d. There is NO connection between the EFFECTIVE ANNUAL RATE and the QUOTED RATE. e. None of the above

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