Tackle the Test: Multiple-Choice Questions

  1. 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?
  2. 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
  3. Question

    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
    If the interest rate is 10%, the present value of $1 paid to you one year from now is
  4. Question

    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
    If the interest rate is 5%, the future value of $100 lent today is
  5. Question

    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
    What is the present value of $100 realized two years from now if the interest rate is 10%?