Tackle the Test: Multipl
e-
Choice Questions
Question
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Suppose, for simplicity, that a bank uses a single interest rate for loans and deposits, there is no inflation, and all unspent money is deposited in the bank. The interest rate measures which of the following?
Question
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If the interest rate is zero, then the present value of a dollar received at the end of the year is
Question
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If the interest rate is 10%, the present value of $1 paid to you one year from now is
Question
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If the interest rate is 5%, the future value of $100 lent today is
Question
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What is the present value of $100 realized two years from now if the interest rate is 10%?