1. A savings account at Bank A pays 6.2 percent interest, compounded annually. Bank B's savings account pays 6 percent compounded monthly. Bank B is paying less total interest each year.

True or False ?

2. The return on common stocks is a combination of dividend paid to the stockholder plus any appreciation in stock price.

True or False ?

3. When interest rates fall, then the market required rates of return fall and bond prices will rise.

True or False ?

4. A proper goal of a firm could be set to maximize the earning after taxes.

True or False

5. To qualify for depreciation, a property must:

a. have its value declining with time

b. Any one of them

c. have a life longer than a year

d. All of them

e. None of above

f. be used for business purpose