#### Words of Wisdom:

"Don't be afraid to cheat ... everyone does it" - Gon_b

# Busn602 Midterm Exam

• Date Submitted: 03/30/2016 10:06 PM
• Flesch-Kincaid Score: 74.4
• Words: 926
• Report this Essay
BUSN602 Midterm Exam
http://hwcampus.com/shop/busn602-midterm-exam/

Part 1 of 1 - 100.0 Points
Question 1 of 20 5.0 Points
As interest rates fall, the prices of existing bonds will:

A.rise
B.stay the same
C.fall
D.either a or b, depending on the state of the economy
E.none of the above

Question 2 of 20 5.0 Points
You need to have \$35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to 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

Question 3 of 20 5.0 Points
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace under the simplest form of market interest rates?

A.4%
B.7%
C.2%
D.1%

Question 4 of 20 5.0 Points
The price level of goods and services may be expressed as the ratio of _____________.

A.GDP to GNP
B.real output to GDP
C.Velocity to GDP
D.real output to velocity
E.none of the above

Question 5 of 20 5.0 Points
John deposits \$2,000 per year at the end of the year for the next 20 years into an IRA account that pays 6%. How much will John have on deposit at the end of 20 years?

A.\$67,520
B.\$73,572
C.\$81,990
D.\$75,686

Question 6 of 20 5.0 Points
The most important savings surplus unit in the economy is:

A.the savings of individuals
B.corporate savings
C.U.S. government savings
D.state and local government savings
Question 7 of 20 5.0 Points...