18. In the Knuckle Method of determining lengths of months, the knuckles represent months of

1. 29 days
2. 30 days
3. 31 days

19 Which of the statements below is incorrect?

1. The exact number of days in the year, 365 or 366 if a leap year
2. Ordinary Interest, or banker's interest, calculations require the use of 360 days
3. None of the above

20 A promissory note

1. Does not bear interest
2. Is a legal document in which one person or firm agrees to pay a certain amount of money, on a specific day in the future, to another person or firm.
3. Is not a legal document

21 The formula of the interest amount of a promissory note is

1. Interest= Face Value x Rate
2. Interest = Face Value Rate Time
3. Interest = Face Value (Rate / Time)

22 Which of the following definitions is incorrect?

1. Maker or payer: The person borrowing the money.
2. Face value or principal: The amount paid at maturity
3. Payee: The person who loaned the money and who will receive the payment

23 The maturity value is calculated using the following formula

1. Maturity Value = Face Value - Interest
2. Maturity Value = Face Value + Interest
3. Maturity Value = Face Value x Interest

24 Notes can be

1. bought only
2. sold only
3. bought and sold

25 Discounting the note proceeds can be - finding the value of the note on a specific date before it matures.

1. Proceeds (loan amount) =Face value - Bank discount
2. Proceeds (loan amount) =Face value+Bank discount
3. None of the above