The higher the compunding frequency, the smaller the difference is between quoted rate and the effective rate

Trur ir false

If the interest rate is $12\%$ with daily compounding, then the effective monthly rate $($EMR$)$ is $(1\frac{0\mathrm{.}12}{305}{)}^{20}-1.$ Assuming that there are $365$ days in a year and $30$ days in a month.

$$ True

$$ False