Which of the following is an example of a financial market? A local coffeehouse where people regularly buy and sell financ
Question 1
Which of the following is an example of a financial market?
A local coffeehouse where people regularly buy and sell financial instruments
A bank that only accepts deposits and issues loans
An electronic network used for buying and selling textbooks
A central bank used for raising taxes and borrowing on behalf of the government
Question 2
Identify which item is not one of the six parts of the financial system.
Financial markets
Central banks
Credit cards
Financial institutions
Question 3
"When an individual obtains a car loan and makes all of the regular monthly payments, the sum of the payments made will exceed the purchase price of the car. This is due primarily to the core principle:"
Risk requires compensation.
Information is the basis for decisions.
Markets determine prices and allocate resources.
Time has value.
Question 4
The future value of $100 that earns 10% annually for n years is best expressed by which of the following?
$100(0.1)n
$100 x n x (1.1)
$100(1.1)n
$100/(1.1)n
Question 5
The future value of $100 at a 5% per year interest rate at the end of one year is:
$95%.00
$105.00
$97%.50
None of the above
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