What refers to the negotiable claim issued by a bank in lien of a term deposit ?

Related Mcqs:

1. A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10% ?

   A. P1,549.64
   B. P1,459.64
   C. P1,345.98
   D. P1,945.64

2. What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc ?

   A. Railroad bond
   B. Equipment obligation bond
   C. Equipment bond
   D. Equipment trust bond

3. What refers to the claim of anyone to ownership ?

   A. Proprietorship
   B. Assets
   C. Equity
   D. Liability

4. What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled ?

   A. Authorized capital stock
   B. Preferred stock
   C. Incorporator stock
   D. Common stock

5. Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest?

   A. 12.19 %
   B. 12.03 %
   C. 11.54 %
   D. 10.29 %

6. A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount ?

   A. 3.67 %
   B. 4.00 %
   C. 4.15 %
   D. 4.25 %

7. Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?

   A. 13.15 %
   B. 13.32 %
   C. 13.46 %
   D. 13.73 %

8. You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank ?

   A. P 62.44
   B. P44.55
   C. P54.66
   D. P37.56

9. What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund ?

   A. T-bills
   B. Securities
   C. Bond
   D. Bank notes

10. What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for ?

    A. Dividend
    B. Equity
    C. Return
    D. Par value