BA1310 Final questions with verified
answers 2025/2026
Compounding - correct answer ✔✔This process of accumulation, as interest is paid on interest
that has already been earned, is called____
Interest Rate - correct answer ✔✔The opportunity cost to the bank of lending you money is
represented by the_______
Compounding - correct answer ✔✔This process of accumulation, as interest is paid on interest
that has already been earned, is called
Interest Rate - correct answer ✔✔charges you on the loan-the price of borrowing money for a
specified period of time, expressed as a percentage per dollar borrow and per unit of time.
Present Value - correct answer ✔✔how much a certain amount of money that will be obtained
in the future is worth today is____
Risk - correct answer ✔✔_______exists when the cost or benefits of an event or choice are
uncertain
Expected Value - correct answer ✔✔______is the average of each possible outcome of a future
event, weighted by its probability of occurring
Risk Adverse - correct answer ✔✔Those who generally have low willingness to take on risk are
said to be______
, Risk Pooling - correct answer ✔✔____occurs when people organize themselves in a group to
collectively absorb the cost of the risk faced by each individual.
risk diversification - correct answer ✔✔_____when people organize themselves in a group to
collectively absorb the cost of the risk faced by each individual.
Adverse Selection - correct answer ✔✔The first problem insurance companies face is____
Adverse Selection - correct answer ✔✔This concept describes a state that occurs when buyers
and sellers have different information about the quality of a good or the riskiness of a situation
Moral Hazard - correct answer ✔✔the tendency for people to behave in a riskier way or to
renege on contracts when they do not face the full consequences of their actions.
Business Ethics - correct answer ✔✔the principle and standards that determine acceptable
conduct in business organizations.
Social Responsibility - correct answer ✔✔the principle and standards that determine acceptable
conduct in business organizations.
Ethical Issue - correct answer ✔✔is an identifiable problem, situation, or opportunity that
requires a person to choose from among several actions that may be evaluated as right or
wrong, ethical, or unethical.
bribes - correct answer ✔✔it is considered improper to give or accept ________, which are
payments, gifts, or special favors intended to influence the outcome of a decision.
plagirism - correct answer ✔✔taking someone else's work and presenting it as your own
without mentioning
answers 2025/2026
Compounding - correct answer ✔✔This process of accumulation, as interest is paid on interest
that has already been earned, is called____
Interest Rate - correct answer ✔✔The opportunity cost to the bank of lending you money is
represented by the_______
Compounding - correct answer ✔✔This process of accumulation, as interest is paid on interest
that has already been earned, is called
Interest Rate - correct answer ✔✔charges you on the loan-the price of borrowing money for a
specified period of time, expressed as a percentage per dollar borrow and per unit of time.
Present Value - correct answer ✔✔how much a certain amount of money that will be obtained
in the future is worth today is____
Risk - correct answer ✔✔_______exists when the cost or benefits of an event or choice are
uncertain
Expected Value - correct answer ✔✔______is the average of each possible outcome of a future
event, weighted by its probability of occurring
Risk Adverse - correct answer ✔✔Those who generally have low willingness to take on risk are
said to be______
, Risk Pooling - correct answer ✔✔____occurs when people organize themselves in a group to
collectively absorb the cost of the risk faced by each individual.
risk diversification - correct answer ✔✔_____when people organize themselves in a group to
collectively absorb the cost of the risk faced by each individual.
Adverse Selection - correct answer ✔✔The first problem insurance companies face is____
Adverse Selection - correct answer ✔✔This concept describes a state that occurs when buyers
and sellers have different information about the quality of a good or the riskiness of a situation
Moral Hazard - correct answer ✔✔the tendency for people to behave in a riskier way or to
renege on contracts when they do not face the full consequences of their actions.
Business Ethics - correct answer ✔✔the principle and standards that determine acceptable
conduct in business organizations.
Social Responsibility - correct answer ✔✔the principle and standards that determine acceptable
conduct in business organizations.
Ethical Issue - correct answer ✔✔is an identifiable problem, situation, or opportunity that
requires a person to choose from among several actions that may be evaluated as right or
wrong, ethical, or unethical.
bribes - correct answer ✔✔it is considered improper to give or accept ________, which are
payments, gifts, or special favors intended to influence the outcome of a decision.
plagirism - correct answer ✔✔taking someone else's work and presenting it as your own
without mentioning
