Ch 4 Quiz - 1. MC Qu. 1 Which of the following is not true...

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1. MC Qu. 1 Which of the following is not true when developing a time line? Which of the following is not true when developing a time line? The cost is known as the interest rate. Cash outflows are designated with a positive number. The time line shows the magnitude of cash flows at different points in time. Cash inflows are designated with a positive number. 2. award: 10 out of 10 points MC Qu. 2 People borrow money because they expect. .. People borrow money because they expect… consumers don't need to calculate the impact of interest on their purchases. the time value of money to only apply if they are saving money. their purchases to give them the satisfaction in the future that compensates them for the interest payments charged on the loan. interest rates to rise. 3. award: 10 out of 10 points MC Qu. 3 A payment that your bank credits to your account in one year is . .. A payment that your bank credits to your account in one year is known as a: computed interest rate present value future value transfer 4. award: 0 out of 10 points MC Qu. 4 How are future values affected by changes in interest rates? How are future values affected by changes in interest rates? Future values are not affected by changes in interest rates. The higher the interest rate, the larger the future value will be. The lower the interest rate, the larger the future value will be.
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One would need to know the present value in order to determine the impact. 5.
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Ch 4 Quiz - 1. MC Qu. 1 Which of the following is not true...

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