# 50 Finance Multiple Choice Questions Assignment

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Question Question 1 Starting to invest early for retirement increases the benefits of compound interest. True False Question 2 Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant? A. Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays semiannually. Deposits in Bank B will provide the higher future value if you leave your funds on deposit. B. The present value of a 5-year, $250 annuity due will be lower than the PV of a similar ordinary annuity. C. If an investment pays 10% interest, compounded annually, its effective annual rate will be less than 10%. D. A bank loan's nominal interest rate will always be equal to or less than its effective annual rate. E. A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage. Question 3 If a firm raises capital by selling new bonds, it is called the "issuing firm," and t

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