Time Value of Money Multiple Choice Questions with Answers – PDF Download

MCQ 1: The loan-able funds theory is used to determine:

1. savings
2. interest rate
3. future value
4. present value

MCQ 2: The suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of:

1. financial markets
2. setting interest arte
3. setting compounding rate
4. setting savings rate

MCQ 3: The value which converts series of equal payments in to the value received at the beginning of investment is classified as:

1. decreased value of annuity
2. increased value of annuity
3. present value of annuity
4. future value of annuity

MCQ 4: The interest rate which is not reinvested but is earned is classified as:

1. invested interest
2. simple interest
3. earned interest
4. unstated interest

MCQ 5: The value which converts series of equal payments in to the value received at end time of investment is classified as:

1. present value of annuity
2. future value of annuity
3. decreased value of annuity
4. increased value of annuity