**1221. Time value of money indicates that __________.**

**A. A unit of money obtained today is worth more than a unit of money obtained in future . ***

B. A unit of money obtained today is worth less than a unit of money obtained in future

C. There is no difference in the value of money obtained today and tomorrow.

D. None of the above

**1222. Time value of money supports the comparison of cash flows recorded at different time period by _________.**

A. Discounting all cash flows to a common point of time

B. Compounding all cash flows to a common point of time**C. Using either A or B ***

D. None of the above

**1223. If the nominal rate of interest is 10% per annum and there is quarterly compounding , the effective rate of interest will be __________.**

A. 10% per annum

B. 10.10 % per annum

C. 10.25 % per annum**D. 10.38 % per annum ***

**1224. Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding greater than one ____.**

**A. Effective rate > Nominal rate ***

B. Effective rate < Nominal rate

C. Effective rate= Nominal rate

D. None of the above

**1225. Mr X takes a loan of 50000 $ From HDFC Bank. The rate of interest is 10% per annum. The first installement will be paid at the end of year 5 . Determine the amount of equal annual installments if Mr X wishes to repay the amount in five installments.**

A. 19500 $

B. 19400 $**C. 19310 $ ***

D. None of the above

**1226. If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding______.**

A. 1**B. 2 ***

C. 3

D. None of the above

**1227. Present value tables for annuity cannot be straight away applied to varied stream of cash flows.**

**A. True ***

B. False

**1228. Heterogeneous cash flows can be made comparable by _______.**

A. Discounting technique

B. Compounding technique**C. Either A or B ***

D. None of the above

**1229. What decision-making condition must exist in order for the decision tree to be a valuable tool?**

**A. Risk ***

B. Certainty

C. Uncertainty

D. All of the above

**1230. There are ________ needs in maslow’s hierarchy of needs .**

A. 4

B. 6

C. 7**D. 5 ***