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5. What is another name for the interest rate that relates to additional investmento available to investors in the financial market? A. Burn rate B.

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5. What is another name for the interest rate that relates to additional investmento available to investors in the financial market? A. Burn rate B. Prime rate -C. Federal Funds Rate Opportunity cost of capital D. 6. Note the responsibilities of the Treasurer -A. Monitoring cash levels and cultivating relationships with banks B. Developing new business opportunities C. Organizing company functions D. Preparing financial statements and corporate budgets. E. Determining the appropriate level of insurance 7. Which of the following actions might increase short-term profits but give rise to more serious problems in the future? Circle all that apply. A. Issuance of a Christmas bonus to all employees B. Taking out a Line of Credit C. Moving to alternative, less expensive, raw materials. D. Substantial cuts in the workforce. Chapter Two (How to calculate Present Value) 8. A dollar today is worth more than a dollar tomorrow True B. False 9. What is the term given to the concept of earning interest upon interest? A. Predatory Lending B. Simple Interest C. Plausible deniability D) Compound Interest 10, How much would you have to invest today to earn $1,000 at the end of ten years assuming a 7% rate of return? A. $408.35 B. $508.35 C. S750.00 D. Not enough information is provided

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