UNIT 5 AND UNIT 6 GEFE (2023-24)

Indicate which of the following statements is correct:

• In the compound capitalisation law, interest is proportional to the length of time the investment lasts.

• The NIR is the nominal annual percentage rate

• The annual percentage rate is a theoretical interest rate.

• None of the above is correct

Indicate which of the following propositions is correct:

• An annuity is a succession of capital valued at different interest rates.
• An annuity is a series of funds maturing at the same time.
• An annuity is a series of capital valued at different times and at the same interest rate.
• None of the above.

Indicate which of the following propositions is correct:

• The equal payment system of loan repayment is characterised by the fact that interest is not paid periodically.

• According to the constant instalment depreciation system, each disbursement is made for the same amount.

• The French depreciation system is characterised by increasing interest payments.

• None of the above.

Which of the following propositions is correct?

• A borrowing is the aliquot part of a loan.
• A loan is the aliquot part of a borrowing.
• A bond is the aliquot part of a loan.
• None of the above is correct.

Indicate which of the following propositions is correct:

• The redemption premium means that the bondholder receives an amount that is less than the nominal amount of his security.
• The issuance of the bond at par means that more interest is received periodically than if it is issued at par.
• Zero coupon bonds do not accrue periodic interest.
• None of the above is correct.

Which of the following is correct?

• Borrowings have sufficient guarantees of repayment because they are issued by large companies.

• In order to ensure that the loan is repaid, the issuing company must offer guarantees to bondholders.

• Bonds are issued to finance the operating cycle.

• All of the above are correct.

Which of the following is correct?

• Renting is also called financial leasing.
• Leasing is considered to be a source of financing fixed assets.
• The leasing contract has a shorter duration than the renting contract.
• All of the above are correct.

Indicate which of the following is correct:

• The fractional interest rate is proportional to the annual interest rate in compound capitalisation.
• The nominal rate is a theoretical rate that is not used directly in the formulas.
• The annual interest rate is not used in compound capitalisation formulas.
• None of the above is correct.

Indicate which of the following propositions is correct:

• Leasing requires providing more guarantees than renting.
• The payment of the leasing instalment includes the maintenance of the asset.
• The payment of the leasing fee includes the maintenance of the asset.
• None of the above is correct.

Indicate which of the following propositions is correct:

• Planned business investments do not supose any risk to the company.

• Investment decisions can be easily modified.

• The objectives of investment projects have two dimensions: strategic and operational.

• None of the above is correct.