1. Dr. Burgess oversees the pharmacy center within Hughes Regional Hospital. Dr. Burgess is planning on purchasing two medication dispensing units which she wants to pay back in a short-term period. The current pharmacy center is experiencing a positive cash flow. She is meeting with her local bank for options. Which type of loan should Dr. Burgess request?

   a. Line of credit

   b. Term loan

   c. Balloon loan

   d. Single payment loan

2. Which of the following does not describe a bond?

   a. Bonds maturing in later years will have a lower interest rate.

   b. A bond is a long-term promise.

   c. Bonds are generally issued in $5,000 denominations.

   
   

   d. Bonds are backed by the issuing entity.

3. Seltry Hospital is researching various investment funds. When investing there are three important rules. Which of the following is not one of the rules of investing funds?

   a. First in priority is the return on investment.

   b. Safety of the principal that will be invested is considered first.

   c. Funds are invested in securities that are readily available when needed.

   d. The interest to be earned on the investment is important

4. Which of the following is not true of a bank certificate of deposit (CD)?

   a. Interest on the CD may be paid periodically.

   b. During the 2007-2009 recession, the single deposit limit increased to $200,000.

   c. The Federal Deposit Insurance Corporation (FDIC) insures the CD.

   d. The total limit for a single depositor is $100,000.

5. Which of the following is not true of a bank certificate of deposit (CD)?

   a. Interest on the CD may be paid periodically.

   b. During the 2007-2009 recession, the single deposit limit increased to $200,000.

   c. The Federal Deposit Insurance Corporation (FDIC) insures the CD.

   d. The total limit for a single depositor is $100,000.

6. Summerland Assisted Living Center is a for-profit center looking to acquire another assisted living center in the community that is struggling financially. Summerland will finance the expansion with which type of option if they do not want debt to show on the balance sheet?

   a. Variable-rate debt

   b. Corporate stock

   c. Fixed-rate debt

   d. Tax-free bonds

7. Belleview Hospital expanded their surgical unit to include more operating rooms. They negotiated a 20-year loan with monthly payments and a large sum of $550,000 due at the end of the loan. How much will Belleview Hospital have to invest today to meet the large sum payment of 550,000 in 8 years, assuming cash could be invested at 6% interest?

   Period	1%	2%	4%	6%
   5	0.951	0.906	0.822	0.747
   6	0.942	0.888	0.790	0.705
   7	0.933	0.871	0.760	0.665
   8	0.923	0.853	0.731	0.627
   9	0.914	0.837	0.703	0.592
   10	0.905	0.820	0.676	0.558

   a. $344,850

   b. $387,750

   c. $410,850

   d. $452,100

Answer rating: 100% (QA)

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