In time value of money, nominal rate is_______________?

Related Mcqs:

1. Nominal interest rates and nominal cash flows are usually reflected the____________?

   A. Inflation effects
   B. Opportunity effects
   C. Equity effects
   D. Debt effects

2. In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?

   A. No inflation
   B. High inflation
   C. No transactions
   D. No acceleration

3. Real rate expected cash flows and nominal rate expected cash flows must be______________?

   A. Accelerated
   B. Equal
   C. Different
   D. Inflated

4. Nominal rate which is quoted to consumers on loans is considered as__________?

   A. Annual percentage rate
   B. Annual rate of return
   C. Loan rate of return
   D. Local rate of return

5. In time value of money, periodic rate is_________?

   A. Not shown on timeline
   B. Shown on timeline
   C. Multiplied on timeline
   D. Divided on timeline

6. Process of calculating future value of money from present value is classified as____________?

   A. Compounding
   B. Discounting
   C. Money value
   D. Stock value

7. Collection of money from investors and spending money in other investment activities is classified as__________________?

   A. Future funds
   B. Hedge funds
   C. Retirement funds
   D. Pension funds

8. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?

   A. Positive
   B. Negative
   C. Zero
   D. One

9. The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is _____________?

   A. 0.0725
   B. 0.08246
   C. 0.1025
   D. 0.0925

10. The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?

    A. 0.0744
    B. 0.0844
    C. 0.0944
    D. 0.1044