Chapter Review: True or False Quiz

This online quiz contains 7 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1		A nominal interest rate always has a compounding period equal to or less than a year.
			A)	TRUE
			B)	FALSE
2		When deposits are made into an account between compounding periods, those deposits do not begin to accrue interest until the next interest period begins.
			A)	TRUE
			B)	FALSE
3		If the compounding period is not stated for a particular interest rate, it is assumed to be equal to the period over which the interest rate is expressed.
			A)	TRUE
			B)	FALSE
4		For an interest rate that is compounded annually, it is possible to calculate an effective interest rate for a three-year time period just by multiplying the annual rate by three.
			A)	TRUE
			B)	FALSE
5		If the single payment factors are used when interest is compounded continuously, there are an infinite number of interest rate-time period combinations that would yield the correct answer.
			A)	TRUE
			B)	FALSE
6		The n value for an arithmetic gradient must always be expressed in years.
			A)	TRUE
			B)	FALSE
7		In the three cases involving the relative length of compounding and payment periods for uniform series cash flows, the only one where the original cash flow diagram is changed is when the payment period is shorter than the compounding period.
			A)	TRUE
			B)	FALSE