Engineering Economics - Elements (Exercise 6)

What do you call a one-time credit against taxes?

• Due credit

• Tax credit

• Credible Credit

• Revenue Credit

What is used when a quick estimate of the doubling time for the invested money is needed?

• Rule of 48

• Rule of 36

• Rule of 24

• Rule of 72

What is the increase in the money value of a capital asset is called?

• Profit

• Capital gain

• Capital expenditure

• Capital stock

What is the reduction in the money value of capital asset is called?

• Capital expenditure

• Capital loss

• Loss

• Deficit

What refers to the negotiable claim issued by a bank in lien of a term deposit?

• Time deposit

• Bond

• Capital gain certificate

• Certificate of deposit

What denotes in the fall in the exchange rate of one currency in terms of the others? This term is usually applies to the floating exchange rate.

• Currency appreciation

• Currency depreciation

• Appreciation

• Depreciation

What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?

• Compulsory saving

• Consumer saving

• Forced saving

• All of these

The flow back of profit plus depreciation form a given project is called ______ .

• Capital recovery

• Cash flow

• Consumer saving

• Economic return

The true value of interest rate computed by equations for compound interest for a 1 year period isknownas ______.

• Expected return

• Nominal interest

• Effective interest

• Effective interest

Capitalized cost of any structure or property is computed by which formula?

• First cost + interest of first cost

• Annual cost - interest of first cost

• First cost + cost of perpetual maintenance

• First cost + salvage value