C708 - PRINCIPLES OF FINANCE -
UNIT 4 QUIZ, QUESTIONS AND
VERIFIED ANSWERS
WhichA2predictionA2basedA2onA2aA2descriptionA2ofA2theA2yieldA2curveA2isA2notA2correct?
AA2flatA2yieldA2curveA2suggestA2thatA2interestA2ratesA2willA2beA2cut.A2
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2remainA2theA2sameA2inA2th
eA2future.A2
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2beA2raisedA2inA2theA2future.
A2
AnA2invertedA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2beA2dramaticallyA2cut.A2-
A2Ans--
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2remainA2theA2sameA2inA2th
eA2future.
WhichA2answerA2isA2notA2aA2factorA2thatA2influencesA2marketA2interestA2rates?
DeferredA2consumptionA2
AlternativeA2investmentsA2
InflationaryA2expectationsA2
StockA2marketA2activityA2-A2Ans--StockA2marketA2activity
WhichA2answerA2isA2notA2aA2costA2toA2theA2investorA2thatA2isA2includedA2inA2theA2calculatio
nA2ofA2anA2investment'sA2interestA2rate?
InflationA2
BrokerageA2commissionsA2andA2feesA2
OpportunityA2CostA2
RiskA2ofA2aA2badA2investmentA2-A2Ans--BrokerageA2commissionsA2andA2fees
OfA2theA2followingA2carA2financingA2options,A2whichA2oneA2wouldA2youA2preferA2whileA2ass
umingA2thatA2youA2preferA2payingA2theA2leastA2amountA2ofA2dollarsA2andA2thatA2youA2faceA2
aA210%A2annualA2compoundA2interestA2rateA2onA2allA2yourA2financialA2decisions?
UNIT 4 QUIZ, QUESTIONS AND
VERIFIED ANSWERS
WhichA2predictionA2basedA2onA2aA2descriptionA2ofA2theA2yieldA2curveA2isA2notA2correct?
AA2flatA2yieldA2curveA2suggestA2thatA2interestA2ratesA2willA2beA2cut.A2
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2remainA2theA2sameA2inA2th
eA2future.A2
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2beA2raisedA2inA2theA2future.
A2
AnA2invertedA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2beA2dramaticallyA2cut.A2-
A2Ans--
AA2normalA2yieldA2curveA2suggestsA2thatA2interestA2ratesA2willA2remainA2theA2sameA2inA2th
eA2future.
WhichA2answerA2isA2notA2aA2factorA2thatA2influencesA2marketA2interestA2rates?
DeferredA2consumptionA2
AlternativeA2investmentsA2
InflationaryA2expectationsA2
StockA2marketA2activityA2-A2Ans--StockA2marketA2activity
WhichA2answerA2isA2notA2aA2costA2toA2theA2investorA2thatA2isA2includedA2inA2theA2calculatio
nA2ofA2anA2investment'sA2interestA2rate?
InflationA2
BrokerageA2commissionsA2andA2feesA2
OpportunityA2CostA2
RiskA2ofA2aA2badA2investmentA2-A2Ans--BrokerageA2commissionsA2andA2fees
OfA2theA2followingA2carA2financingA2options,A2whichA2oneA2wouldA2youA2preferA2whileA2ass
umingA2thatA2youA2preferA2payingA2theA2leastA2amountA2ofA2dollarsA2andA2thatA2youA2faceA2
aA210%A2annualA2compoundA2interestA2rateA2onA2allA2yourA2financialA2decisions?