Multiple Choice Questions;

(1) __________ time is based on counting the actual number of days in a time period.

(a) Exact

(b) Ordinary

(C) latent

(d) Preferred

(e) Official

(2) The method of lending money at ordinary interest using exact time is called the __________.

(A) Customer's rule

(b) Preferred rule

(c) Standard rule

(d) banker's rule

(3) If money is borrowed from a bank at a simple interest rate, the bank often collects the interest, which is also called the __________, at the time the loan is made.

(a) Bank discount

(b) Broker's discount

(c) Customer's discount

(d) Principle discount

(4) In a discounted note, the amount the maker receives after subtracting the discount is called the __________.

(a) Profit

(b) Proceeds

(c) Maturity value

(d) Principal