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The MCQ: Type of interest rates consist of; "Semiannual and Compounding Periods" App Download (Free) with answers: Nominal rates; Periodic rates; Effective annual rates; to study online MBA finance courses. Practice Semiannual and Compounding Periods Quiz Questions, download Apple eBook (Free Sample) for online business administration degree.

## Semiannual and Compounding Periods MCQs: Questions and Answers

MCQ 1:

In the time value of money, the nominal rate is

1. not shown on timeline
2. shown on timeline
3. multiplied on timeline
4. divided on timeline
MCQ 2:

The type of interest rates consist of

1. nominal rates
2. periodic rates
3. effective annual rates
4. all of the above
MCQ 3:

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

1. One time compounding
2. annual compounding
3. semiannual compounding
4. monthly compounding
MCQ 4:

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

1. annual rate
2. periodic rate
3. perpetuity rate of return
4. annuity rate of return
MCQ 5:

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

1. repaid schedule
2. depreciated schedule
3. amortization schedule
4. appreciated schedule

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