Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin)Chapter 4 The Meaning of Interest Rates4、1 Measuring Interest Rates1) The concept of ________ is based on the mon-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today、A) present valueB) future valueC) interestD) deflationAnswer: AAACSB: Application of Knowledge2) The present value of an expected future payment ________ as the interest rate increases、A) fallsB) risesC) is constantD) is unaffectedAnswer: AAACSB: Reflective Thinking3) An increase in the time to the promised future payment ________ the present value of the payment、A) decreasesB) increasesC) has no effect onD) is irrelevant toAnswer: AAACSB: Reflective Thinking4) With an interest rate of 6 percent, the present value of $100 next year is approximatelyA) $106、B) $100、C) $94、D) $92、Answer: CAACSB: Analytical Thinking5) What is the present value of $500、00 to be paid in two years if the interest rate is 5 percent?A) $453、51B) $500、00C) $476、25D) $550、00Answer: AAACSB: Analytical Thinking6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate isA) 5 percent、B) 10 percent、C) 12、5 percent、D) 15 percent、Answer: BAACSB: Analytical Thinking7) To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process ofA) face value、B) par value、C) deflation、D) discounting the future、Answer: DAACSB: Analytical Thinking8) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as aA) simple loan、B) fixed-pa...
