Question: How is the estimated duration (ED) of a project calculated when applying an activity’s optimistic estimate (OD), most-likely estimate (MD), and pessimistic estimate (PD)?
Answer Options: A. ED = OD × 4MD × PD B. ED = OD + 4MD + PD / 6 C. ED = (OD + 4MD + PD) × 6 D. ED = (OD + 4MD + PD) / 6
Answer: D. ED = (OD + 4MD + PD) / 6
Question: Assume that a time estimate for an activity is determined to be 12 weeks if major difficulties are encountered. What type of estimate is this?
Answer Options: A. Most-likely time B. Critical time C. Pessimistic time D. Delay time
Answer: C. Pessimistic time
Question: What effect does inflation have on money?
Answer Options: A. It increases interest rates. B. It increases savings due to the change in money’s purchasing power. C. It erodes money’s purchasing power. D. It recovers money’s purchasing power.
Answer: C. It erodes money’s purchasing power.
Question: If $10,000 could be invested in an account for two years, with year one at an interest rate of 4.5% and year two at an interest rate of 1%, what would be the value of this account at the end of the two-year term? (Assume no funds are withdrawn during the time period; round to the nearest dollar.)
Answer Options: A. $555 B. $10,555 C. $14,555 D. $15,550
Answer: B. $10,555
Question: How much money would need to be invested today, with an interest rate of 2%, to have $1,000 at the end of a two-year term? (Assume no funds are withdrawn during the time period; round to the nearest dollar.)
Answer Options: A. $952 B. $961 C. $980 D. $998
Answer: B. $961
Question: How is the real rate of interest calculated?
Answer Options: A. Effective rate minus nominal rate of inflation B. Actual rate minus return on investment C. Annual rate multiplied by (1 – rate of inflation) D. Annual rate minus rate of inflation
Answer: D. Annual rate minus rate of inflation
Question: Which of the following rates is the Annual Percentage Rate (APR) of interest equivalent to?
Answer Options: A. Effective B. Nominal C. Discounted D. Flat
Answer: B. Nominal
Question: What is present value?
Answer Options: A. The current worth of a future sum of money given a specified rate of return B. The current worth of a future sum of money less the value of expressed interest C. The future worth of a current sum of money plus the value of expressed interest D. The future worth of a current sum of money given a specific rate of return
Answer: A. The current worth of a future sum of money given a specified rate of return
Question: Which of the following statements is true about interest?
Answer Options: A. Most financial institutions lend on the nominal rate of interest. B. The nominal rate of interest is fixed among lenders. C. The effective rate of interest is traditionally less than its corresponding nominal rate of interest. D. The effective rate of interest is traditionally more than its corresponding nominal rate of interest.
Answer: D. The effective rate of interest is traditionally more than its corresponding nominal rate of interest.
Question: Which of the following is an assumption of present value of money?
Answer Options: A. There is risk involved in rating. B. Interest rates fluctuate with capital spending. C. The effects of inflation can be ignored. D. Money has limited life.
Answer: C. The effects of inflation can be ignored.
Question: Assume that a piece of equipment costs $13,000 and will save the organization $3,000 per year over the next five years. At the end of the five years, the equipment will be worth $4,000. What is the payback period?
Answer Options: A. 2.5 years B. 3 years C. 3.8 years D. 4.33 years
Answer: D. 4.33 years
Question: What is the purpose of Net Present Value (NPV)?
Answer Options: A. To secure the best interest rate for a potential investment B. To secure the organization’s best required rate of return (RRR) C. To compare an investment’s Annual Percentage Rate (APR) to the cost of an investment D. To determine the difference between an investment opportunity’s present value of cash inflows and outflows
Answer: D. To determine the difference between an investment opportunity’s present value of cash inflows and outflows
Question: Identify the cell that would be elevated with a parasite infection?
Answer Options: basophil eosinophil monocyte neutrophil
Answer: eosinophil
Question: Blood type AB produce ______ antibodies.
Answer Options: B A neither A nor B both A and B
Answer: neither A nor B
Question: Which may be found in plasma?
Answer Options: albumin hormones water all of these can be found in plasma
Answer: all of these can be found in plasma
Question: You are testing an unknown blood sample. You obtain the following results upon administration of antisera: Antisera A: – Antisera B: + Antisera D or Rh: +
Answer Options: O+ O- A+ B+
Answer: B+
Question: Identify the stimulus for release of Erythropoietin (EPO).
Answer Options: parasites bacteria hypoxia elevated blood pressure
Answer: hypoxia
Question: The stimulus for release of thyroid-stimulating hormone from the anterior pituitary is low T3/T4 blood levels.
Answer Options: True False
Answer: True Chapter 1 Quiz – American Government and Civic Engagement: