Midterm Module No. 1: Introducing Money and Interest Rates
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Questions and Answers

Bond Certificate represents a donation made by investors to the issuer.

False

An Authorized Share is the maximum number of shares that a corporation may issue without modifying its charter.

True

Credit rating evaluates the credit risk of a prospective borrower and predicts their likelihood of investing in the stock market.

False

Debt Instruments involve the borrower promising to pay fixed amounts of money at regular intervals until a specific date.

<p>True</p> Signup and view all the answers

Economies of Scale refer to the increase in average cost resulting from a decrease in the volume of production.

<p>False</p> Signup and view all the answers

Financial Instruments can only give rise to financial assets and not financial liabilities.

<p>False</p> Signup and view all the answers

The term 'Money Aggregates' refers to measures that include only money and ignore other liquid assets.

<p>False</p> Signup and view all the answers

In the Philippines, PhilpaSS is the Real Time Gross Settlement (RTGS) payment system.

<p>True</p> Signup and view all the answers

Present Discounted Value is another term for Future Value concept.

<p>False</p> Signup and view all the answers

A sum of money is considered to have less value in the future due to its earning potential in the concept of Adverse Selection.

<p>False</p> Signup and view all the answers

According to the Midterm Module, Money is any item accepted as a means of payment and classified under M2: Broad Money.

<p>False</p> Signup and view all the answers

An Interest Rate is described as the price of the loanable funds from the viewpoint of the borrower.

<p>False</p> Signup and view all the answers

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