Globale Microeconomics

Business

Quiz 16 :

Interest Rates, Investments, and Capital Markets

Quiz 16 :

Interest Rates, Investments, and Capital Markets

Question Type
search
arrow
Suppose two people with the same level of income and wealth have different discount rates. Joe has a very high discount rate and Jim has a very low discount rate. Which one of the following is TRUE?
Free
Multiple Choice
Answer:

Answer:

A

Tags
Choose question tag
close menu
arrow
If the interest rate is 10%, then $1 received one year from now is worth how much today?
Free
Multiple Choice
Answer:

Answer:

C

Tags
Choose question tag
close menu
arrow
You place $100 in a bank account that pays 8%. If you remove the interest you receive each year you can turn your stock into a flow of
Free
Multiple Choice
Answer:

Answer:

D

Tags
Choose question tag
close menu
arrow
Four banks are offering the same interest rate of 4%. Where do you invest?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
You invest an amount today for four years that pays 6% annually. The bank compounds annually. At the end of the four years you will have $150. What amount must you invest today?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If the interest rate is 10%, then $1 today is worth how much one year from now?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If an individual wins a multimillion dollar lottery and chooses to receive annual payments equaling the total prize, this person has a
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If inflation turns out to be higher than was anticipated, debtors are helped because
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If savers require a 2% return and inflation is expected to be 3%, what approximate rate will banks offer savers?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
As the interest rate rises, the present value of a given perpetual stream of income
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If you place $100 in a bank account that pays 6% at the end of each year, and you leave your $100 and all your interest in the bank, how much will you have in the bank at the end of 7 years with annual compounding?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Suppose a person has a discount rate of zero. This implies she
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
You can put your $100 in Bank A that pays 8% at the end of the year. You can also put your $100 in Bank B that pays 4% at the end of six months and then 4% again at the end of the year. You will keep your $100 and all interest in the bank. At the end of the year
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
For a given rate of interest, the total interest you receive from lending money
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If inflation turns out to be higher than was anticipated,
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If you invest $500 today, and the value one year from today is $1000, then the annual interest rate must be
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If inflation is 10% and the nominal interest rate equals 16.6% the real interest rate is equal to
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Interest rates are positive mainly because
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
If your bank pays you 6% interest on a savings account and inflation is 2%, your approximate real rate of interest is
Multiple Choice
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 120