1. When you calculate the present value of an asset, for example a bond, you are calculating _____.

   		maximum price you would pay for the asset
   		minimumm price you would pay for the asset
   		future value of the asset
   		insurance premiums

2 points

QUESTION 48

1. Monetary policy refers to _____.

   		making good banking decisions
   		controlling deposits
   		managing the money supply

2 points

QUESTION 49

1. ____ are loans on which the loan interest rate is tied to some market interest rate and changes over time..

   		Certificates of deposit
   		Adjustable rate mortgages
   		US T-Bills
   		Fixed coupon bonds

2 points

QUESTION 50

1. Insurance companies insure their clients for a fee called a(n) ____.

   		benefit
   		premium
   		annuity
   		contribution

2 points

QUESTION 51

1. [Extra Credit Question] Liz bought a house for $200,000 which she financed for 30 years at 3%, annual payments. How much Principal did she pay on the loan the first year?

   		$4,203.85
   		$6,000.00
   		$8,319.61
   		$10,203.85

2 points (Extra Credit)

QUESTION 52

1. [Extra Credit Question] Larry bought a $300,000 house which he financed for 30 years at 2.50% annual interest with annual payments. How much Interest did he pay on the loan the first year?

   		$6,833.29
   		$7,500.00
   		$14,333.23
   		$6,000.00

2 points (Extra Credit)

QUESTION 53

1. [Extra Credit Question] The price of one country's currency in terms of another country's currency is the ____.

   		foreign exchange market
   		foreign exchange rate
   		foreign intermediary rate
   		LIBOR rate

2 points (Extra Credit)

QUESTION 54

1. The value of any asset is the ___ of its ___.

   		future value; future cash flows
   		future value of past cash flows
   		present value; future cash flows
   		present value; past cash flows

2 points (Extra Credit)

QUESTION 55

1. The U.S. Government uses money markets because ____.

   		tax revenues exceed spending
   		spending equals tax revenues
   		spending exceeds tax revenues