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1. What is the main difference between APR (Annual Percentage Rate) and APY (Annual Percentage Yield)?
A) APR accounts for compound interest, while APY does not.
B) APR calculates interest on both the principal and the accumulated interest, while APY only calculates interest on the principal.
C) APR does not account for compounding, while APY does.
D) APR is used for lending, while APY is used for borrowing.
2. Which of the following best describes APR (Annual Percentage Rate)?
A) APR includes compound interest and accounts for multiple compounding periods.
B) APR is calculated based on simple interest, without considering compounding.
C) APR always yields a higher return than APY.
D) APR is only applicable for crypto platforms offering staking services.
3. When is APY typically more beneficial than APR in cryptocurrency investments?
A) When interest is paid out monthly.
B) When interest is compounded frequently, leading to higher returns.
C) When the investment duration is short-term.
D) When you are involved in lending or borrowing through traditional financial institutions.