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homework please help

Financial institutions and Markets FINC 3350 Fall 2019 Multiple Choice (4% - 25 - 100%) 1. An investor requires a 3 percent increase in purchasing power to induce her to lend. She expects inflation to be 2 percent next year. The nominal rate she must charge is about A) 3 percent B) 2 percent. C) 1 percent. D) 5 percent 2. An ordinary annuity is best defined by which one of the following? A) Increasing payments paid for a definitive period of time. B) Equal payments paid at the end of regular intervals over a stated time period. C) Equal payments paid at the beginning of regular intervals for a limited time period. D) Equal payments that occur at set intervals for an unlimited period of time. 3. Which of the following would normally be expected to result in a decrease in the supply of funds, all else equal? 1. The perceived riskiness of all investments decreases. 11. Expected inflation increases. III. Current income and wealth levels decrease. IV. Near term spending needs of households increase as energy costs rise. A) I and III only B) II and III only C) II, III, and IV only D) I and IV only 4. It takes about how many years for your initial $500 investment to get double if annual compound interest rate is 8%? A) 6 B) 7 C) 8 D) 9 5. Investment A pays 8 percent simple interest for 10 years. Investment B pays 8 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to (to the nearest penny) A) -3590 B) 3590 C) -2109 D) 2109