With an interest rate of 9%, $5,000 will grow to $10,000 in approximately A) 8 years. B) 4 years. C) 12 years. D) 24 years. ANSWER A
Date: September 19th, 2020
The main resources of the International Monetary Fund are provided by A) the members of the World Bank. B) its member countries primarily through payments of quotas. C) members of the Organization for Economic Cooperation and Development. D) the Bank for International Settlements. ANSWER Answer: B
Date: September 19th, 2020
In 1992, the European Union decided to create an economic as well as a monetary union involving the introduction of A) a pegged currency known as the euro. B) a managed currency know as the ecu. C) a freely floating exchange rate for a currency known as the euro. D) a single European currency managed […]
Date: September 19th, 2020
Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Year Project A Project B 0 -$100,000 -$100,000 1 $39,500 0 2 $39,500 0 3 $39,500 $133,000 Which project(s) should be accepted? A) A, because it has a shorter payback period. B) B, because it has a higher […]
Date: September 19th, 2020
Adjustable-rate mortgages increase risk for lenders and reduce risk for borrowers. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Your chances of coming out of arbitration with a better offer than previously provided by the dealer or manufacturer are almost 90%. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which organization was originally designed to encourage free trade between member states by regulating and reducing tariffs on traded goods? A) NAFTA B) EU C) ASEAN D) GATT ANSWER Answer: D
Date: September 19th, 2020
Adjusted gross income equals gross income plus employer paid fringe benefits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The return on the market is 11%. A firm’s beta is 1.4, and the risk-free rate is 6%. The stock is currently selling for $18 and the next dividend is expected to be $1.75. The firm’s growth rate is 5%. The pre-tax cost of debt is 10% and the equity risk premium is 5%. Estimate […]
Date: September 19th, 2020
Borrowers who believe interest rates are likely to decline prefer fixed rate mortgages. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
