Question

o buy d lilew Lexus ive years trom today. To achieve that goal, you want to know ho determine how much much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help investment today, you will use: a. present value factors b. annuity value factors c. present value factors of an annuity d. future value factors of an annuity 2-A loan that is repaid in equal payments over a specified time period is called a (n) a. discount loan b. balloon loan c. amortized loan d. none of the above 3-Which of the following sources of savings is consistently the largest on an annual basis? a. personal savings b. undistributed corporate profits c. federal, state, and local government surpluses d. capital consumption allowances 4-The major factors which influence the level of savings are the level of a. income and the life stage of the individual saver b. income, cconomic expectations, cyclical influence, and the life stage of the individual saver c. income, interest rates, and the life stage cycle of the individual saver d. income and interest rates S-A saver who chooses securities as a savings medium and desires maximum safety of principal buys: a. public utility stocks corporate stocks c. high-grade corporate bonds d. government bonds 6- that can be changed into a specified number of shares of the issuer's common stock is called a a. retractable bond b. convertible bond C, callable bond d. collateralized bond 7-Which type of bond is currntly prohibited from being issuced in the United States? a. bearer bonds b. unregulated debentures c. tax avoidance bonds d. income bonds 8-Compensation for those financial debt instruments that cannot be casily converted to cash at prices close to estimated a. liquidity premium market values is termed: b. market risk premium c maturity premium

Answer 1

1. Option a. Discounts the future to present value

2. Option c.

3. Option a.

4. Option b.

5. Option d. Least risk investment

6. Option b.

7. Option a.

8. Option b. Rewards for the risk carried