BASTA CM TO

Question 1

institution in the Philippines sets the official interest rate

Answer 1

BSP

Question 2

What is interest rate

Answer 2

The cost of borrowing or lending money or the cost of credit

Question 2

A higher interest rate usually leads to:

Answer 2

HIGHER BARROWING COST

Question 2

the official interest rate in the Philippines

Answer 2

REVERSE REPO RATE

Question 2

What is a variable interest rate?

Answer 2

A rate that changes as the index changes

Question 2

What is the real interest rate?

Answer 2

The interest rate adjusted for inflation or deflation

Question 3

What is compound interest?

Answer 3

Giving interest to interest earned

Question 3

Why is the real interest rate important?

Answer 3

It reflects the true return on savings and investments

Question 4

the opportunity cost of money

Answer 4

THE PRICE OF MONEY

Question 5

Lending of credit

Answer 5

Lending arrangement with a maximum amount of funds

Question 6

In a discounted loan, when is interest paid

Answer 6

IN ADVANCE

Question 7

YM equal for simple loans

Answer 7

SIMPLE INTEREST RATE

Question 8

happens when interest rates are high

Answer 8

DEMAND FOR MONEY DECREASES

Question 8

Why monitor market trends

Answer 8

To meet evolving customer expectations

Question 8

the pure or risk-free interest rate usually associated with

Answer 8

GOVERNMENT SECURITIES

Question 8

interest rate ensure in the economy

Answer 8

Current savings will flow into investment

Question 8

one benefit of trend analysis

Answer 8

ANTICIPATING CHANGES

Question 8

the effective interest rate higher in a discounted loan

Answer 8

INITEREST IS PAID IN ADVANCE

Question 9

technological trend

Answer 9

NEW INNOVATION OF TECHNOLOGIES

Question 9

data overload do

Answer 9

HINDER INSIGHT GATHERING

Question 10

How do businesses respond to trends

Answer 10

By strategic response and consumer engagement

Question 11

happens if inflation expectations rise

Answer 11

NOMINAL INTEREST RATE INCREASES

Question 12

interpolation help calculate

Answer 12

EXACT YIELD MATURITY

Question 13

yield if coupon is ₱300 and price is ₱10,000

Answer 13

3%

Question 14

tool does BSP use to maintain economic stability

Answer 14

INTEREST RATE

Question 15

compensating balance

Answer 15

A required deposit the borrower must maintain

Question 16

Formula of compounding interest

Answer 16

P (1 + r)^n

Question 17

Deducting the investment or principal needed for the project or investment from this total present value, the result is the ____

Answer 17

NET PRESENT VALUE

Question 17

an economic disorder characterized by continuous increase in the price level of goods and services without the corresponding increase in the production of these goods and services

Answer 17

INFLATION

Question 18

The interest is computed by adding the interest to the principal to be used as the new basis or new principal for the succeeding year or period.

Answer 18

COMPUND INTEREST

Question 19

The concept of the ____ of money is based on the notion that a peso received today is worth more than a peso received in the future.

Answer 19

TIME- VALUE

Question 20

It has a time value, if kept in a vault it loses value over time.

Answer 20

MONEY

Question 21

Formula of future value

Answer 21

PV \times (1 + r)^n

Question 22

refers to the amount of money an investment will grow to at a specific point in the future, considering a certain rate of return or interest rate.

Answer 22

FUTURE VALUE

Question 22

an annuity with a payment due immediately at the beginning of each period

Answer 22

ANNUITY DUE

Question 22

answers the question how much is the worth today of an amount that will be received in the future

Answer 22

PRESENT VALUE

Question 23

a straightforward way to calculate interest on a loan or investment

Answer 23

SIMPLE INTEREST

Question 23

Formula for present value

Answer 23

CF [1 / (1+r)^n]

Question 24

the value at the current time of the cash flow expected to be received after some period of time

Answer 24

PRESENT VALUE

Question 25

used in financial decision-making, particularly in evaluating investment alternatives.

Answer 25

NET PRESENT VALUE

Question 26

In the formula P x R x T what does T stands for

Answer 26

TIME

Question 27

defined as a stream or a series of payments made or receipt receive over time.

Answer 27

ANNUITY

Question 27

It is synonymous with the terms "terminal value" and "maturity value."

Answer 27

FUTURE VALUE

Question 28

Annuity problems involves a series of equal of periodic payments or receipts called ___

Answer 28

RENT

Question 28

An annuity in which the cash flows, or payments, occur at the end of the period, may be paid monthly, quarterly, semi-annually, or annually.

Answer 28

ORDINARY ANNUITY

Question 28

the process in which future value is determined

Answer 28

COMPOUND OR ACCUMULATION

Question 29

In the formula P x R x T what does P stands for

Answer 29

PRINCIPAL

Question 29

Simple interest formula

Answer 29

PxRxT

Question 29

Alex deposits $1,000 in a bank account that earns simple interest at a rate of 5% per year. How much interest will he earn after 3 years?

Answer 29

150

Question 30

Sarah borrowed $800 at a simple interest rate of 4% per year for 2 years. How much interest will she pay

Answer 30

64

Question 31

Emma invested $1,500 at a simple interest rate of 3% per year. How much interest will she earn in 5 years

Answer 31

225

Question 32

A sum of $800 is invested at 5% compound interest per year. What will be the amount after 2 years

Answer 32

882

Question 33

If $1,000 is invested at 10% interest compounded annually for 2 years, what is the compound interest

Answer 33

210

Question 34

If $2,000 is invested at 6% per annum compounded annually, what will be the amount after 3 years

Answer 34

2,382.40

Question 35

How much compound interest is earned on $1,500 at 8% per annum compounded annually for 2 years

Answer 35

249.60

Question 36

What is the main difference between simple interest and compound interest

Answer 36

Compound interest is calculated on principal and previously earned interest