
Miniquiz
Authored by Tanjung MH
Other
University
Used 4+ times

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10 questions
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1.
MULTIPLE CHOICE QUESTION
45 sec • 10 pts
The further in the future you receive a dollar, the more it is worth today.
false
true
not clear
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The higher the rate of interest, the more likely you will elect to invest your funds and forgo current consumption.
not clear
false
true
3.
MULTIPLE CHOICE QUESTION
30 sec • 10 pts
The process of converting the initial amount into future value is called discounting.
false
true
not clear
4.
MULTIPLE CHOICE QUESTION
30 sec • 10 pts
The growth in the future value of an investment over time is not linear, but exponential.
not clear
true
false
5.
MULTIPLE CHOICE QUESTION
30 sec • 10 pts
If Bank A pays interest on a monthly basis and Bank B pays the same interest on a quarterly basis, then investing $1,000 in Bank B will lead to a higher future value than investing the same amount in Bank A.
false
not clear
true
6.
MULTIPLE CHOICE QUESTION
30 sec • 10 pts
The future value factor for 10 years at 15% is calculated as (1 + 0.15)10.
false
true
not clear
7.
MULTIPLE CHOICE QUESTION
30 sec • 10 pts
The higher the discount rate, the lower the present value of a future cash flow.
false
true
not clear
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