What refers to the amount of money paid for the use of borrowed capital ?
(A) Interest
(B) Rate of interest
(C) Simple interest
(D) Principal
What refers to the cost of borrowing money or the amount earned by a unit principal per unit time ?
(A) Yield rate
(B) Rate of return
(C) Rate of interest
(D) Economic return
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal ?
(A) Return of investment
(B) Interest rate
(C) Yield
(D) Rate of return
A uniform series of payment occurring at equal interval of time is called ____________________?
(A) Annuity
(B) Amortization
(C) Depreciation
(D) Bond
What is the term for an annuity with a fixed time span ?
(A) Ordinary annuity
(B) Perpetuity
(C) Annuity certain
(D) Annuity due
What is the type of annuity where the payments are made at the end of each period starting from the first period ?
(A) Ordinary annuity
(B) Perpetuity
(C) Annuity due
(D) Deferred annuity
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond ?
(A) Par value of bond
(B) Face value of bond
(C) Redeemed value of bond
(D) Value of bond
What is the type of annuity where the payments are made at the beginning of the each period starting from the first period ?
(A) Ordinary annuity
(B) Perpetuity
(C) Annuity due
(D) Deferred annuity
What refers to the need, want or desire for a product backed by the money to purchase it ?
(A) Supply
(B) Demand
(C) Product
(D) Good
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the_________________?
(A) Law of diminishing return
(B) Law of supply
(C) Law of demand
(D) Law of supply and demand