Time Value of Money MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Time Value of Money, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Time Value of Money MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Time Value of Money mcq questions that explore various aspects of Time Value of Money problems. Each MCQ is crafted to challenge your understanding of Time Value of Money principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Time Value of Money MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Time Value of Money. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Time Value of Money knowledge to the test? Let's get started with our carefully curated MCQs!

Time Value of Money MCQs | Page 5 of 9

In the situation of bankruptcy, the stock which is recorded above common stock and below debt account is
Answer: (b).preferred stock
If security pays $5,000 in 20 years with 7% annual interest rate, the PV of security by using formula is
Answer: (b).1292.10 dollars
An interest rate which is quoted by brokers, banks and other financial institutions is classified as
Answer: (c).nominal rate
A company that sells products to customer without demanding immediate payment but record it in balance sheet as
Answer: (b).account receivable
The nominal rate which is quoted to consumers on the loans is considered as
Answer: (a).annual percentage rate
An inventory recording in balance sheet includes
Answer: (d).both a and b
The values recorded as determined in the marketplace are considered as
Answer: (a).market values
A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as
Answer: (c).annuity
The financial securities that can be converted into cash at closing to their book value price are classified as
Answer: (c).cash equivalents
The discounted cash flow analysis is also classified as
Answer: (b).time value of money
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