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## Semiannual and Compounding Periods MCQ Quiz : Financial Management MCQs

MCQ 1: In the time value of money, the nominal rate is

A) not shown on timeline
B) shown on timeline
C) multiplied on timeline
D) divided on timeline

MCQ 2: The type of interest rates consist of

A) nominal rates
B) periodic rates
C) effective annual rates
D) all of the above

MCQ 3: The future value of interest if it is calculated once a year is classified as

A) One time compounding
B) annual compounding
C) semiannual compounding
D) monthly compounding

MCQ 4: An interest rate which is paid by the money borrower and charged by lender is considered as

A) annual rate
B) periodic rate
C) perpetuity rate of return
D) annuity rate of return

MCQ 5: A schedule which shows the interest constitutes reduced principal and unpaid balance is considered as

A) repaid schedule
B) depreciated schedule
C) amortization schedule
D) appreciated schedule

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