1. (TRUE or FALSE?) The APR is the true cost of borrowing and lending, it is the rate that should be used for making all finance decisions.

2. (TRUE or FALSE?) If you pay the same insurance premium amount every month for a term life policy for a period of five years, then the stream of cash flows is called an annuity.

3. (TRUE or FALSE?) The British Treasury Department bonds, called consols, were the first widely used securities as an annuity.

4. (TRUE or FALSE?) The quoted interest rate is an interest rate that has been annualized by dividing the rate per period by the number of compounding periods, and the EAR is an example for the consumer borrowing and lending rates which are annualized in this manner.