Please mark your answers on the scantron sheet and submit the scantron sheet only. 1. Which of the following statements about time lines is false? a. A time line is a graphic portrayal of a time value problem. b. Time zero is the present point in time. c. Future time periods are to the right of zero. d. Time is portrayed along a vertical line. 2. Holding all other variables constant, an increase in the interest rate will causeto decre a. future values b. present values c. annuity payments d. growth rates 3. The process of finding present values is frequently called a. annualizing b. compounding. c. discounting d. leasing. 4. The present value of a future amount is: a. that sum which if deposited today will grow into the future amount. b. referred to as the discounted value of the future amount. c. always smaller than the future amount, for positive interest rates d. All of the above 5. Opportunity cost is the: a. benefit that would have been available from the next best use of money b. prime rate for large firms. c. unemployment rate. d. rate on standard savings accounts