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

Annuity

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

 Grows


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?

 Mortgage 


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:

 Mortgage 


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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