[曼昆经济学原理宏观第五版测试题库27.docVIP

Chapter 27 The Basic Tools of Finance TRUE/FALSE 1. If the interest rate is 8 percent, then the present value of $1,000 to be received in 4 years is $735.03. ANS: T DIF: 2 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Applicative 2. If a savings account pays 5 percent annual interest, then the rule of 70 tells us that the account value will double in approximately 14 years. ANS: T DIF: 2 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Compounding MSC: Applicative 3. The present value of $100 to be paid in two years is less than the present value of $100 to be paid in three years. ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Analytic 4. The future value of $1 saved today is $1/(1 + r). ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Analytical 5. The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum. ANS: T DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Interpretive 6. The sooner a payment is received and the higher the interest rate, the greater the present value of a future payment. ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Analytical 7. A company that can build a project that will cost $50,000, but returns $52,000 in one year would make a good decision by turning this project down if the interest rate were 3 percent. ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Investment | Present value MSC: Analytical 8. As the interest rate increases, the present value of future sums decreases, so firms will find fewer investment projects prof