Agec 4040 Old Test 2024/2025 Exam
Questions and Verified Answers |
Already Graded A+
In comparing an ordinary annuity and an annuity due, which of the following
is true
A) the future value of an ordinary annuity is always greater than the future
value of an otherwise identical annuity due
B) all things being equal one would prefer to receive an ordinary annuity
compared to an annuity due
C) the future value of an annuity due is always greater than the future value
of an otherwise indentical ordinary annuity
D) the future value of an annuity due is always less than the future value of
an otherwise identical ordinary annuity since one less payment is receive
with an annuity due - 🧠ANSWER ✔✔C) the future value of annuity due is
aleays greater than the future value of an otherwise identical ordinary
annuity
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,The future value of a dollar ________ as the interest rate increases and
________ the farther in the future is the funds are to be received.
a. decreases; decreases.
b. decreases; increases.
c. increases; increases.
d. increases; decreases. - 🧠ANSWER ✔✔D) increases; decreases
_______ rate of interest creates equilibrium between the supply of savings
and the demand for investment funds
A) inflationary
B) risk free
C) real
D) nominal - 🧠ANSWER ✔✔C) real
Generally an increase in risk will result in_______. Hint use TVM basic
formulas
A) a lower return on investment
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,B) a higher required return or interest rate
C) a lower required return or interest rate
D) a higher return on investment - 🧠ANSWER ✔✔D) a higher return on
investment
________ rate of interest is actual rate charged by the supplier and paid by
the demanded of funds
A) risk free
B) nominal
C) real
D) inflationary - 🧠ANSWER ✔✔B) nominal
A _______ is a graphic depiction between the maturity and rate of return
for bonds with similar risks
A) risk return profile
B) yield curve
C) aggregate demand curve
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, D) supply function - 🧠ANSWER ✔✔B) yield curve
A_______ yield curve reflects higher expected future rates of interest
A) linear
B) downward sloping
C) upward sloping
D) flat - 🧠ANSWER ✔✔C) upward sloping
The key inputs to the valuation process include ______ hint think of most
complete description
A) returns and risk
B) cash flows and discount rate
C) returns, discount rate, and risk
D) cash flow, cash flow timing, and risk - 🧠ANSWER ✔✔D) cash flow, cash
flow timing, and risk
The value of any asset is the
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers |
Already Graded A+
In comparing an ordinary annuity and an annuity due, which of the following
is true
A) the future value of an ordinary annuity is always greater than the future
value of an otherwise identical annuity due
B) all things being equal one would prefer to receive an ordinary annuity
compared to an annuity due
C) the future value of an annuity due is always greater than the future value
of an otherwise indentical ordinary annuity
D) the future value of an annuity due is always less than the future value of
an otherwise identical ordinary annuity since one less payment is receive
with an annuity due - 🧠ANSWER ✔✔C) the future value of annuity due is
aleays greater than the future value of an otherwise identical ordinary
annuity
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,The future value of a dollar ________ as the interest rate increases and
________ the farther in the future is the funds are to be received.
a. decreases; decreases.
b. decreases; increases.
c. increases; increases.
d. increases; decreases. - 🧠ANSWER ✔✔D) increases; decreases
_______ rate of interest creates equilibrium between the supply of savings
and the demand for investment funds
A) inflationary
B) risk free
C) real
D) nominal - 🧠ANSWER ✔✔C) real
Generally an increase in risk will result in_______. Hint use TVM basic
formulas
A) a lower return on investment
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,B) a higher required return or interest rate
C) a lower required return or interest rate
D) a higher return on investment - 🧠ANSWER ✔✔D) a higher return on
investment
________ rate of interest is actual rate charged by the supplier and paid by
the demanded of funds
A) risk free
B) nominal
C) real
D) inflationary - 🧠ANSWER ✔✔B) nominal
A _______ is a graphic depiction between the maturity and rate of return
for bonds with similar risks
A) risk return profile
B) yield curve
C) aggregate demand curve
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, D) supply function - 🧠ANSWER ✔✔B) yield curve
A_______ yield curve reflects higher expected future rates of interest
A) linear
B) downward sloping
C) upward sloping
D) flat - 🧠ANSWER ✔✔C) upward sloping
The key inputs to the valuation process include ______ hint think of most
complete description
A) returns and risk
B) cash flows and discount rate
C) returns, discount rate, and risk
D) cash flow, cash flow timing, and risk - 🧠ANSWER ✔✔D) cash flow, cash
flow timing, and risk
The value of any asset is the
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
