Q2: How do banks make money? By issuing new currencies into the market. By charging interests to depositors who deposit their money in the bank. By issuing licenses to foreign banks who want to operate in Singapore. By charging fees for various services such as Credit Card annual fee, loan interest rates, late payment fees. Q3: Which of the following statements accurately describes simple interest? Simple interest is the interest calculated on the principal amount, the accumulated interest, and the time period of the investment. Simple interest is the interest calculated on both the principal and the accumulated interest. Simple interest is the interest calculated only on the principal amount. Simple interest is the interest calculated on the principal amount and the time period of the investment. Q4: What is the difference between a debit card and a credit card? A debit card charges interest on purchases, while a credit card doesn't. A debit card allows you to spend money you don't have, while a credit card doesn't. A debit card is only accepted at certain stores, while a credit card is accepted everywhere. A debit card is money deducted from your account, whilst a credit card is money paid by the issuing bank at the point of purchase.
Q2: How do banks make money? By issuing new currencies into the market. By charging interests to depositors who deposit their money in the bank. By issuing licenses to foreign banks who want to operate in Singapore. By charging fees for various services such as Credit Card annual fee, loan interest rates, late payment fees. Q3: Which of the following statements accurately describes simple interest? Simple interest is the interest calculated on the principal amount, the accumulated interest, and the time period of the investment. Simple interest is the interest calculated on both the principal and the accumulated interest. Simple interest is the interest calculated only on the principal amount. Simple interest is the interest calculated on the principal amount and the time period of the investment. Q4: What is the difference between a debit card and a credit card? A debit card charges interest on purchases, while a credit card doesn't. A debit card allows you to spend money you don't have, while a credit card doesn't. A debit card is only accepted at certain stores, while a credit card is accepted everywhere. A debit card is money deducted from your account, whilst a credit card is money paid by the issuing bank at the point of purchase.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Q2:
How do banks make money?
- By issuing new currencies into the market.
- By charging interests to depositors who deposit their money in the bank.
- By issuing licenses to foreign banks who want to operate in Singapore.
- By charging fees for various services such as Credit Card annual fee, loan interest rates, late payment fees.
Q3:
Which of the following statements accurately describes simple interest?
- Simple interest is the interest calculated on the principal amount, the accumulated interest, and the time period of the investment.
- Simple interest is the interest calculated on both the principal and the accumulated interest.
- Simple interest is the interest calculated only on the principal amount.
- Simple interest is the interest calculated on the principal amount and the time period of the investment.
Q4:
What is the difference between a debit card and a credit card?
- A debit card charges interest on purchases, while a credit card doesn't.
- A debit card allows you to spend money you don't have, while a credit card doesn't.
- A debit card is only accepted at certain stores, while a credit card is accepted everywhere.
- A debit card is money deducted from your account, whilst a credit card is money paid by the issuing bank at the point of purchase.
What is the definition of net worth?
- The total amount of money you make in a year
- The total amount of debt you owe
- The total amount of money you have saved in a retirement account
- The total value of all your assets minus your liabilities
Section B(1)
Q6:
Which of the following is an accurate definition of
- Future value is the projected total interest earned in the future.
- Future value refers to the sum of all the cash flows an investment generates over its lifetime.
- Future value is the amount of money an investment will be worth at a future date, based on a specified interest rate and compounding period.
- Future value is the price at which an investment can be sold in the future.
Section C(1)
Q7:
Which of the following investment accounts allows account holders to reduce their taxable income, invest in a wide range of financial instruments, but has a lock-in period and penalty for early withdrawals?
- Supplementary Retirement Scheme (SRS)
- Current Account
- CPF Investment Scheme
- Savings Account
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