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FIN7013-chap5-8exam-8th_edition-test[1]

# FIN7013-chap5-8exam-8th_edition-test[1]

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12/15/2013

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NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET
Learner:
If requested by your mentor, use an assignment cover sheet as the first page of the
wordprocessor
file. Use “headers” to indicate your course code, assignment number, and your name on each page of theassignment/homework including this assignment cover sheet. .
Keep a Photocopy or Electronic Copy Of Your Assignments:
You may need to re-submit assignments if your mentor has indicatedthat you may or must do so.
All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers,and other projects required by the faculty mentor. The knowing submission of another persons work represented as that of theLearner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for thework submitted or for the entire course, and may result in academic dismissal.
Northcentral University FIN7013

FIN7013-chap5-8exam
There are 50 multiple choice questions on the exam. Each question is worth 2 points. For a total of 100 points.Please highlight the correct answer for the multiple choice questions. GOOD LUCK!
Northcentral University FIN7013

1. A year ago, you invested \$1,000 in a savings account that pays an annual interest rate of 7%.What is your approximate annual real rate of return if the rate of inflation was 3% over the year?A. 4%.B. 10%.C. 7%.D. 3%.E. none of the above.2. You purchased a share of stock for \$20. One year later you received \$1 as dividend and soldthe share for \$29. What was your holding period return?A. 45%B. 50%C. 5%D. 40%E. none of the above3. Which of the following determine(s) the level of real interest rates?I) the supply of savings by households and business firmsII) the demand for investment fundsIII) the government's net supply and/or demand for fundsA. I onlyB. II onlyC. I and II onlyD. I, II, and IIIE. none of the above4. Other things equal, an increase in the government budget deficitA. drives the interest rate down.B. drives the interest rate up.C. might not have any effect on interest rates.D. increases business prospects.E. none of the above.5. Ceteris paribus, a decrease in the demand for loanable fundsA. drives the interest rate down.B. drives the interest rate up.C. might not have any effect on interest rate.D. results from an increase in business prospects and a decrease in the level of savings.E. none of the above.
Northcentral University FIN7013