【国际经济学专题考试试卷二十七】The Basic Tools of Finance
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Chapter 27
The Basic Tools of Finance
TRUE/FALSE
1. If the interest rate is 8 percent, then the present value of $1,000 to be received in 4 years is $735.03.
ANS: T DIF: 2 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Present value MSC: Applicative
2. If a savings account pays 5 percent annual interest, then the rule of 70 tells us that the account value will
double in approximately 14 years.
ANS: T DIF: 2 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Compounding MSC: Applicative
3. The present value of $100 to be paid in two years is less than the present value of $100 to be paid in three
years.
ANS: F DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Present value MSC: Analytic
4. The future value of $1 saved today is $1/(1 + r).
ANS: F DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Present value MSC: Analytical
5. The present value of any future sum of money is the amount that would be needed today, at current interest
rates, to produce that future sum.
ANS: T DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Present value MSC: Interpretive
6. The sooner a payment is received and the higher the interest rate, the greater the present value of a future
payment.
ANS: F DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Present value MSC: Analytical
7. A company that can build a project that will cost $50,000, but returns $52,000 in one year would make a good
decision by turning this project down if the interest rate were 3 percent.
ANS: F DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Investment | Present value MSC: Analytical
8. As the interest rate increases, the present value of future sums decreases, so firms will find fewer investment
projects profitable.
ANS: T DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Investment | Present value MSC: Analytical
9. According to the rule of 70, if you earn an interest rate of 3.5 percent, your savings will double about every 20
years.
ANS: T DIF: 1 REF: 27-1
NAT: Analytic LOC: The Study of economics, and definitions of economics
TOP: Rule of 70 MSC: Definitional
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