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

Correct! Wrong!

2. Treasury bills are?

Correct! Wrong!

3. Nominal Interest Rate is also known as?

Correct! Wrong!

4. The concept of compound interest refers to?

Correct! Wrong!

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

Correct! Wrong!

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

Correct! Wrong!

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

Correct! Wrong!

8. Money has time value because?

Correct! Wrong!

9. The real rate of interest reflects compensation for?

Correct! Wrong!

10. Interest has 3 types?

Correct! Wrong!

Time Value of Money MCQs (1-10)
Super Excellent ***
Excellent ***
Very Good **
Good *
Fair
Fail

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