Questionnaire PDF

## QUESTIONNAIRE ### 1. **(2.1)** Which of the following statements is correct? * In simple capitalisation operations, when the interest rate is constant, the amount of interest accruing in each of the periods increases as the number of periods in which the capital remains invested increases. * I...

## QUESTIONNAIRE ### 1. **(2.1)** Which of the following statements is correct? * In simple capitalisation operations, when the interest rate is constant, the amount of interest accruing in each of the periods increases as the number of periods in which the capital remains invested increases. * In simple capitalisation operations, the interest rate is always constant and the interest accruing in each period is proportional to the initial capital. * In simple capitalisation operations, when the interest rate is not constant, the interest accruing in each of the periods is not proportional to the initial capital. * All the above answers are false. ### 2. **(2.1)** Which of the following statements is correct? * In simple capitalisation operations, the interest accrued in each period is proportional to the initial capital. * In simple capitalisation operations, interest accrued is added to the initial capital to continue to generate new interest in subsequent periods. * In the simple capitalisation system, when the interest rate applied in each period is not constant, the interest earned in each period is constant. * None of the above answers is correct. ### 3. **(2.2)** (**2.3**) Which of the following statements is correct? * In rational discounting, the financial capital that is taken as the basis for the calculation of the financial discount is the nominal value. * In rational discounting, the amount of the discount is calculated using the formula $D = \frac{C \cdot n \cdot i}{1 - n \cdot i}$. * In commercial discounting, the principal taken as the basis for the calculation of the financial discount is the discounted value or present value. * All the above answers are false. ### 4. **(2.3)** (**2.4**) An institution offers us, as options for discounting a financial capital, an annual simple interest rate of 9.5% or an annual simple discount rate of 9.25%: * We prefer the annual simple interest rate because it is higher. * We prefer 9.25% because the financial discount that apply to us is lower. * It makes no difference to us whether we choose one or the other. * We would have to check whether they are equivalent in order to show a preference for one of them. ### 5. **(2.4)** Which of the following statements is correct? * It is said that two quantities are equivalent when, applied to different capitals and for the same period, the same results are obtained. * Two interest rates are said to be equivalent when, applied to the same capital, the same results are obtained for different time intervals. * It is said that two interest rates are equivalent when, applied to the same capital and for the same period, the same results are obtained. * All the above answers are false. ### 6. **(2.3)** Which of the following statements is correct? * If we apply the financial law of simple commercial discounting and the financial law of simple rational discounting to the same final capital or nominal value and for the same number of periods, we will obtain the same present value or discounted value when the simple interest rate applied is equal to the simple discount rate. * If in a financial discounting operation, the simple interest rate applied by one entity is equal to the simple discount rate applied by another entity, the financial discount that would be applied when discounting a given amount by applying the financial law of simple rational discounting is greater than the discount that would be applied when discounting the same amount by applying the financial law of simple commercial discounting. * If in a financial discounting operation, the simple interest rate applied by one entity is equal to the simple discount rate applied by another entity, the present value or discounted value that would be obtained by discounting a given amount using the financial law of simple rational discounting is greater than the present value or discounted value that would be obtained by discounting the same amount using the financial law of simple commercial discounting. * All the above answers are false. ### 7. **(2.4)** Which of the following statements is correct? * In simple laws, the simple interest rate equivalent to a simple discount rate would be given by the relationship: $i= \frac{d}{1+ n \cdot d}$ * In simple financial laws, the simple interest rate equivalent to a simple discount rate is always lower. * In simple financial laws, the simple interest rate equivalent to a simple discount rate does not depend on the time interval. * All the above answers are false. ### 8. **(2.5)** Which of the following statements is correct? * In a financial operation of substitution of a set of capitals with known maturities by a single payment, the amount of the single capital being equal to the sum of each of the nominal amounts of the financial capital to be substituted, the instant at which the single capital that substitutes them becomes due so that it is equivalent to the capital to be substituted is called the average maturity. * In a financial operation given by the exchange of capitals, ${(C_1,t_1), ... (C_n,t_n)} \rightarrow {(C_{at},t_{at})}$ it must be verified that: $C_1 = \sum_{i=1}^{n} C_i$ * In a financial operation of substitution of a set of financial capitals of known maturities by a single financial capital, the amount of the single financial capital being different from the sum of the nominal amounts of the set of financial capitals to be substituted, the instant at which the single financial capital that substitutes them becomes due so that it is equivalent to the set of financial capitals to be substituted is called the average maturity. * All the above answers are false. ### 9. **(2.1)** (**2.4**) If a financial law of simple capitalisation is applied in a financial operation (exam January 2020): * When the simple interest rate of the transaction is variable, the interest accrued in each period is always constant. * The amount of interest earned in each period is calculated by multiplying the capital accumulated at the beginning of that period by the simple interest rate for that period. * The fractional simple interest rate "ik" equivalent to the annual simple interest rate "i" may be calculated from the following equality: $C_o (1 + i) = C_o (1+i)^{nk}$. * All the above statements are false. ### 10. **(2.3)** To discount a bill of exchange of €1,000 maturing in 60 days, either the financial law of simple commercial discounting or the financial law of simple rational discounting can be applied. If the simple interest rate is equal to the simple discount rate (i=d), which of the following statements is correct? * We prefer the application of the financial law of rational simple discounting because the financial discount that is applied is higher than that obtained by applying the financial law of commercial simple discounting. * We prefer the application of the financial law of rational simple discounting because the discounted value obtained is lower than the discounted value obtained by applying the financial law of commercial simple discounting. * It makes no difference whether the financial law of simple commercial or rational discounting is applied. * All the above statements are false. ### 11. **(2.4)** Given a half-yearly simple interest rate of 1.8%: * The equivalent monthly simple interest rate is 0.2978%. * The equivalent annual simple interest rate is 3.00%. * The equivalent four-month simple interest rate is 1.20%. * All the above answers are false. ### 12. **(2.1)** (**2.4**) If in a financial operation a financial law of simple capitalisation is applied: * Interest accrued in each period generates new interest in the following periods. * The amount of interest earned in a given half-year $I_n$ could be calculated by multiplying the capital accumulated at the beginning of that half-year "$C_{n,1}$" by the annual simple interest rate (i), i.e., $I_n= C_{n,1}x i$. * The fractional simple interest rate "ik" equivalent to the annual simple interest rate i may be calculated from the following equality: $C_o (1 + n \cdot i) = C_o (1 + n \cdot k \cdot i)$. * All the above statements are false. ### 13. **(2.3)** To discount a bill of exchange of €1,000 maturing in 60 days, either the financial law of simple commercial discounting or the financial law of simple rational discounting can be applied. If the simple interest rate is equal to the simple discount rate (i=d), which of the following statements is correct? * We prefer the financial law of simple rational discounting to be applied because the present value we would obtain would be lower than the discounted value obtained by applying the financial law of simple commercial discounting. * We prefer the financial law of simple rational discounting to be applied because the present value we would obtain would be higher than the discounted value obtained by applying the financial law of simple commercial discounting. * We prefer the application of the financial law of simple rational discounting because the financial discount that would be applied would be higher than that applied in the financial law of commercial simple discounting. * All the above statements are false. ### 14. **(2.3)** In a simple discounting financial operation, which of the following statements is correct? * The amount of the financial discount "Dc" decreases as the simple discount rate "d" increases. * The amount of the discounted value "Co" increases as the maturity of the transaction "n" increases. * If d = i, the amount of present value "Co" when applying the financial law of simple rational discounting will be greater than discounted value "Co" when applying the financial law of simple commercial discounting when a given amount "Cn" is discounted over the same number of periods. * None of the above statements is correct. ### 15. **(2.3)** If, in a financial operation involving the discounting of €1,000, the simple interest rate applied by financial institution A is the same as the simple discount rate applied by financial institution B, which of the following statements is correct? * Financial institution "B" is preferred because the resulting discounted value will be higher than that obtained in financial institution "A". * Financial institution "B" is preferred because the resulting financial discount will be lower than that obtained in financial institution "A". * Financial institution "A" is preferred because the resulting discounted value will be higher than that obtained in financial institution "B". * All the above answers are false. ### 16. **(2.1)** If in a financial operation a financial law of simple capitalisation is applied: * The interest accrued in each of the periods is not proportional to the initial capital when the simple interest rate applied in each of the periods does not remain constant. * The interest accruing in each period is always proportional to the initial capital and of a constant amount. * The amount of the equivalent financial capital maturing at a later point in time is obtained by subtracting the interest accrued during the period from the initial capital. * All the above statements are false. ## Solution to the questionnaire 1. - d 2. - a 3. - d 4. - d 5. - c