Exam (elaborations)
D076 AFTER FAIL OA QUESTIONS AND ANSWERS
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D076 AFTER FAIL OA QUESTIONS AND ANSWERS
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D076 AFTERFAIL OA
QUESTIONS
What is the difference between the current ratio and the quick ratio? - answer- Inventory
is excluded in the calculation of the quick ratio.
Three causes of inflation are increased demand for goods and services, rising costs,
and built-in inflation. - answer-
is the rate at which invested money grows for a certain period of time - answer- The
nominal rate
What is the compensation for risk given to investors called? - answer- Risk premium
Which type of interest rate is the rate at which invested money grows for a certain
period time? - answer- Nominal rate
Which component of an interest rate is an indicator of inflation and opportunity cost? -
answer- Risk-free rate
What is the name for the interest rate expressed on an annual basis? - answer- Annual
percentage rate
Why is the required rate of return also known as the hurdle rate? - answer- It is the
minimum rate that a firm must surpass to accept a project.
What is the inflation rate? - answer- The rate at which the average price level of a
basket of goods and services in an economy increases
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