Time Value of Money MCQs 

 

MCQs 1-10

 

1. Interest paid (earned) on only the original principal borrowed (lent) is often referred to as?

2. Treasury bills are?

3. Nominal Interest Rate is also known as?

4. The concept of compound interest refers to?

5. The value of money to be received in the future is _______the value of the same amount of money in hand today?

6. The Time value of money must be considered in total outlay decision because?

7. Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often referred to as __________?

8. Money has time value because?

9. The real rate of interest reflects compensation for?

10. Interest has 3 types?

 

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MCQs  11-20

 

11. The basic rule of the time value of money is?

12. A decrease in the supply for loanable funds, holding demand constant, will cause interest rates to?

13. The value of money results from?

14. The basic price that equates the demand for and supply of loanable funds in the financial markets is the _______?

15. If the interest rate is greater than 0%, then a dollar today is worth?

16. In an inflationary period, interest rates have a tendency to?

17. Which of the following is not a determinant of market interest rates?

18. An unexpected increase in inflation should?

19. If the interest rate is less than 0%, then a dollar today is worth?

20. The risk-free interest rate is composed of?