1. A stream of equal periodic cash flows, over a specified time period is termed as.

1. Cash flow
2. Cash outflow
3. Annuity
4. Payments

2. The process of finding present values has ..

1. Direct relationship with compounding
2. Indirect relationship with compounding
3. No relationship with the compounding
4. All of the above

3. Compounding of interest in two periods within a year is termed as

1. Simple compounding
2. Annual compounding
3. Continuous compounding
4. Semi-annual compounding

4. Preferred stock have a varying amount of dividend, which is usually expressed as a percentage of the par value. (True/ False)

5. A less liquid asset is one that could not be traded in an active market and hence may not be converted into cash quickly at a fair market price. (True/ False)