1. Minimalist Removals Company has borrowed to invest in a project. The loan calls for a payment of $17,384 every month for three years. The lender quoted Largent a rate of 8.40 per cent with monthly compounding. At what rate would you discount the payments to find amount borrowed by Largent? (Round to two decimal places.)

Select one:

a. 8.95%

b. None of the options.

c. 8.40%

d. 8.73%

2. A superannuation fund would not include ______________ as a major proportion of their investment portfolio.

Select one:

a. none of the options.

b. commercial papers.

c. long-term corporate bonds.

d. shares.

3.

_________________ with standing in the community access financial markets and financial institutions for funds.

Select one:

a. Sole traders

b. Small partnerships

c. Large entities

d. all of the options

4.

Fairy won a lottery and was given a perpetual payment of $11, 444. She could invest the cash flows at 7 per cent. What is the present value of this perpetuity? (Round to the nearest dollar.)

Select one:

a. $191,708

b. $201,356

c. $163,486

d. $112,344

5.

Most ethical problems that arise in business dealings are related to:

Select one:

a. all of the options.

b. agency obligations.

c. conflicts of interest.

d. information asymmetry