Maria Alejandra Jimenez Prieto (4701236)

Questions in English of financial mathematics

1.) When two interest rates operate differently (One rate may operate in arrears and another
in advance, or one may compound monthly and the other semiannually, or one quarterly
and the other annually), but gets the same result can be said to be:
a.) Equivalents
b.) Same
c.) Effective
d.) Nominal
Correct answer:
Equivalents

2.) Financial mathematics is useful for:

a.) Manage finances, personal, business, and public
b.) Make business life more complicated
c.) Gather money
d.) Share profits

Correct answer:
Manage finances, personal, business, and public

3. One of the reasons why resources are invested is because you want to increase the capital
you own. There are diverse ways to achieve this, using one of them at the end of the period,
the interest accrued in the immediately preceding period is capitalized. This form is called:
a.) Nominal interest
b.) Compound interest
c.) Simple interest
d.) Capitalization
Correct answer:
Compound interest

4. In the world of finance, various measurements are required, one of the best known is the
one that measures the value of interest as a percentage for a given period. It is the value that
is fixed in the unit of time for every hundred monetary units ($100) that are invested or
taken as a loan. This measurement is called:
a.) Interest rate
b.) Opportunity interest rate
c.) Exchange rate
d.) Tax rate

Correct answer:
Interest rate

5. Do micro, small, and medium enterprises require the use of financial

mathematics? a.) No, only large companies use financial mathematics to make their
decisions
b.) Decisions can be easily made without counting the analyzes derived from financial
mathematics
c.) The use of financial mathematics is vital for the superior performance of all companies,
especially in small and medium-sized companies that are more sensitive to financial
changes.
d.) The use of financial mathematics is costly and useless when implemented in small
companies

Correct answer:
The use of financial mathematics is vital for the satisfactory performance of all companies,
especially in small and medium-sized companies that are more sensitive to financial
changes.

6. If the bond has a price greater than the face value, the IRR is greater than the coupon
Select one:
a) Real
b) Fake
c) None of the above
d) Both
Correct answer:
Real

7. It is the value that is fixed in the unit of time every hundred monetary units ($100)
that are invested or taken as a loan. This measurement is called:
a) Exchange rate
b) Opportunity interest rate
c) Tax rate
d) Interest rate
Correct answer:
Interest rate
8. Does it refer to repaying capital, generally a liability (a loan, for example), through
the distribution of payments over time. Although you can also agree to pay the entire
loan at once?
a) Capital payment
b) Annuities
c) Financial amortizations
d) Credit installments
Correct:
Financial amortizations

9. Is it the amount of money that is accumulated through periodic payments that

generate interest and that are used mainly to pay a debt when it falls due or to face future
commitments?
a. Sinking fund
b. Capital
c. equity futures
d. financial gain
Correct:
Sinking fund

10. Is it a decline in property value due to wear, tear, and disuse?

answer options
a) Depreciation
b) economic degradation
c) useful value
d) financial loss

Correct:
Depreciation