1. The principal differences between capital markets and money markets are that
money and capital markets deal in the same securities, the only difference is term.
both markets deal in short-term debt securities; however, capital markets deal also in equity securities which have an indefinite term.
money markets deal only in short-term government debt.
capital markets deal in long-term debt and equity securities, while money markets deal only in short-term debt.
2. Although budgeting and forecasting appear similar, forecasting relates to a shorter time horizon and usually focus on
cash flow and profitability.
capital considerations.
human resources.
meeting engineering goals.
3. The principle behind time value of money is based on the fact that:
a sum of money in hand today is worth more than the same sum in the future
a sum of money in hand today is worth less than the same sum in the future
a sum of money in the future is worth less than the same sum in hand today
all of the above
a and c only
4. ____ markets deal in long-term securities having maturities greater than one year.
Credit
Money
Super
Capital
5. The present value of an amount can be represented as
PV = FVn[PVFk,n]
PV = FVn[PVFAk,n]
PV = FVn[1 / (1 + k)^n]
all of the above
a and c only