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Finance and Logic Concepts
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Finance and Logic Concepts
Finance and Logic Concepts
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1
Question
What is an annuity?
Answer
An annuity refers to the fixed sum of money paid to someone at regular intervals and subject to a fixed compound interest.
2
Question
What is a simple annuity?
Answer
A simple annuity has the payment interval and compounding of interest as the same.
3
Question
What is a general annuity?
Answer
A general annuity has a payment interval and compounding of interest that are different.
4
Question
What is fair market value?
Answer
Fair market value refers to economic value.
5
Question
What is simple interest?
Answer
Simple interest is interest that is computed based ONLY on the original amount of money.
6
Question
What is compound interest?
Answer
Compound interest is the interest computed on the principal and also on the accumulated past interest.
7
Question
What is preferred stock?
Answer
Preferred stock is a type of stock for which stockholders get first choice in distributed profits.
8
Question
What are bonds?
Answer
Bonds are interest bearing securities which promise to pay an amount of money on a certain maturity date as stated in the certificate.
9
Question
What does a bond represent?
Answer
A bond represents a corporate or government debt obligation.
10
Question
What is a coupon in relation to bonds?
Answer
A coupon is the periodic interest payment that the bondholder receives during the time between purchase date and maturity date.
11
Question
Which stock sold at the highest price during the past 52 weeks according to the table?
Answer
GHI sold at the highest price during the past 52 weeks.
12
Question
What does the Efficient Markets Hypothesis (EMH) assume?
Answer
The Efficient Markets Hypothesis (EMH) assumes that markets reflect all publicly and privately available information.
13
Question
What is true about stock market prices according to the Efficient Markets Hypothesis?
Answer
Stock market prices reflect all publicly available information and are unpredictable.
14
Question
What are examples of a business loan?
Answer
Examples of business loans include microloans, invoice financing, mezzanine financing, bank loans, asset-based financing, cash flow loans, and business cash advances.
15
Question
What are examples of a consumer loan?
Answer
Examples of consumer loans include credit cards, mortgages, home equity lines of credit, refinances, auto loans, student loans, and personal loans.
16
Question
What is a consumer loan?
Answer
A consumer loan is a loan that intends to spend for personal, family, or household purposes.
17
Question
What is a business loan?
Answer
A business loan is a loan that is usually made to fund a company's operating expenses and other financial needs.
18
Question
What is a stock market index?
Answer
A stock market index is a measure of a portion of the stock market.
19
Question
What is collateral?
Answer
Collateral are assets used to secure a loan.
20
Question
What is a fixed-rate mortgage?
Answer
A fixed-rate mortgage is a type of mortgage where the interest remains constant throughout the term of the loan.
21
Question
What is amortization?
Answer
Amortization is the process of paying off debt with regular payments made over time.
22
Question
What is the decimal form of an interest rate that is 12 percent per annum?
Answer
The decimal form of an interest rate that is 12 percent per annum is 0.12.
23
Question
What is the principal amount borrowed by Mr. Santos?
Answer
The principal amount borrowed by Mr. Santos is 2,500,000.00.
24
Question
How much will Lito pay Milo for the down payment on a motorcycle worth 200,000.00 with a 25% down payment?
Answer
Lito will pay Milo 50,000.00 for the down payment.
25
Question
What is a declarative sentence?
Answer
A declarative sentence is a type of sentence that qualifies a proposition.
26
Question
What is negation in logical connectors?
Answer
Negation is represented as p not p.
27
Question
What is conjunction in logical connectors?
Answer
Conjunction is represented as p q or p and q.
28
Question
What is disjunction in logical connectors?
Answer
Disjunction is represented as p q or p or q.
29
Question
What is conditional implication in logical connectors?
Answer
Conditional implication is represented as pq or if p, then q or p implies q.
30
Question
What is bi-conditional in logical connectors?
Answer
Bi-conditional is represented as p q or p if and only if q.