Question: If you hold the annual nominal interest rate constant while increasing the number of compounding periods per year, then Question 1 options: A) the effective

If you hold the annual nominal interest rate constant while increasing the number of compounding periods per year, then

Question 1 options:

A)

the effective interest rate will increase.

B)

the effective interest rate will be halved.

C)

the effective interest rate will not change.

D)

the effective interest rate will decrease.

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