Classified in Economy

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1.A set of frequent And consistent cash flows that end is a:


2.A perpetuity, a special form of annuity, pays Cash flows:

Periodically Forever

3. To compute the PV or FV of an annuity due, Compute the value of an ordinary annuity and then:

Multiply By (1+i)

4. When computing the future value of an Annuity, the higher the compound frequency:

Higher the FV

5.Compounding monthly vs annually causes the FV


6.The effective annual rate (EAR) is a:

 More Accurate measure of the interest rate of compounding

7.Loan amortization schedules show:

 Both Principles and interest

8.When you get your credit card bill, it will Offer a minimum payment, which requires a:

 Minimum Pmt. Plus a little interest top left

9.Which of the following will increases the Present value of an annuity?

Decreased Interest rate 

10.Which of the following is NOT a money Market instrument?


11.Where can demanders of funds issue new Instruments such as stocks and bonds?

 Primary Markets

12.Which interest rate would be correct for a Default-free security if there was no inflation?

 Real interest rate

13.A short-term funds transfer between Financial institutions, usually for less than 1 dat

 Federal Funds

14.The type of institutions arranges most primary market transactions In the U.S. For businesses

 Investment banks

15.Which of these is NOT a capital market Instrument?

Bankers’ Acceptance 

16.To Purchase a home, land or property with a Long-term loan, you need a:


17.The risk that an assets sale price will be Lower than its purchase price due to small markets

 Liquidity risk

18.Markets for trading currencies, either Immediately or in the future:

 Foreign exchange market

19.Debt securities or instruments maturing in less Than one year are found here:

 Money Markets

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