The more frequent the compounding the:

A) greater the present value.
B) greater the amount deposited.
C) greater the effective interest rate.
D) lower the future value.

The more frequent the compounding, the greater the effective interest rate, because the interest is being added more often throughout the year. This can lead to significantly higher returns over time. Therefore, choice C is the correct answer. Choices A, B, and D are not accurate, since they do not reflect the impact of compounding frequency on returns.