1. Everything else equal, when the interest rate increases the future value of an annuity ______; this effect will be _______ as the number of periods increases. A. increases, larger B. increases, smaller C. decreases, larger D. decreases, smaller
2. An example of a ?rm's ?nancing decision would be:? A. acquiring a competitive ?rm B. deciding whether or not to increase the price of its products C. issuing 10-year versus 20-year bonds D. none of the above.