Q1. [1] § What is meant by Interest? § What factors determine interest rates?
If interest rate is compounded quarterly, then the number of conversion periods per year would be _________.
- (A) two
- (B) three
- (C) four
- (D) six
Previously asked in CBSE board exam
2026 92 Q4 (vi)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer
(C) four
When interest is compounded quarterly, conversion occurs 4 times a year (every 3 months).
Explanation
"Quarterly" means every quarter (3 months), so there are 4 quarters in a year = 4 conversion periods. This is a direct definitional fact tested in 1-mark MCQs. No calculation needed — just recall the meaning of "quarterly."
If a question refers to an image, map, graph or diagram that is not shown here, find the actual CBSE question paper on the CBSE website:
cbse.gov.in.