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 7 of 9

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Q61.
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in
Discuss
Answer: (b).decreased cash
Q62.
The future value of annuity FVA (ordinary) is, if the deposited value is $100 and earn 5% every year of the total three years will be
Discuss
Answer: (a).315.25 dollars
Q63.
The total common equity divided by common shares outstanding which is used to calculate
Discuss
Answer: (a).book value of share
Q64.
The prices of bonds will be increased if the interest rates
Discuss
Answer: (d).declines
Q65.
The earnings that are not paid as dividends to stockholders and have cumulative amount are classified as
Discuss
Answer: (c).retained earnings
Q66.
In the time value of money, the periodic rate is
Discuss
Answer: (b).shown on timeline
Q67.
The claim against the assets are represented by
Discuss
Answer: (b).retained earnings
Q68.
The rate charged by bank 12.5% on credit loans and 3% semiannually on installment loans is considered as
Discuss
Answer: (a).periodic rate
Q69.
The dividends paid to common shareholders and divided by common shares outstanding are equals to
Discuss
Answer: (b).dividends per share
Q70.
The future value of interest if it is calculated two times a year can be a classified as
Discuss
Answer: (d).semiannual compounding
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