Mastering the Time Value of Money Quiz

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Mastering the Time Value of Money: a General level Bank Exam Prep quiz. Test your knowledge with 8 questions!
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Questions

Question 1
If you invest money, what usually happens to its value over time?
A It increases due to interest
B It decreases
C It stays the same
D It disappears
Question 2
Which term describes earning interest on previously earned interest?
A Simple interest
B Future value
C Compound interest
D Discounting
Question 3
Which of these is used to calculate the present value?
A Compounding
B Depreciation
C Discounting
D Amortization
Question 4
If interest rates rise, what happens to the present value of a future sum?
A It increases
B It decreases
C It stays the same
D It becomes zero
Question 5
What is the principal amount?
A The total profit
B The interest rate
C The time period
D The original sum of money invested

๐Ÿ“‹ This quiz has 8 questions in total.

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