Question 1

United States Treasury bills at the time of issue are ____.

Accepted Answer

A)  sold at par value 
B)  sold below par value 
C)  have maturities as long as 30 years 
D)  sold by banks and brokerages 
A)  sold at par value 
B)  sold below par value 
C)  have maturities as long as 30 years 
D)  sold by banks and brokerages B

Question 2

A loan with a fixed rate of interest that will be repaid with regular payments over two or more years is called a(n) ____________________.

Accepted Answer

term loan

Question 3

A chartered bank's certificate of deposit is ____.

Accepted Answer

A)  a document showing how much was deposited into a bank account 
B)  generally issued in $5000 denominations 
C)  insured by the federal government if less than $100,000 
D)  a long term, high interest rate investment 
A)  a document showing how much was deposited into a bank account 
B)  generally issued in $5000 denominations 
C)  insured by the federal government if less than $100,000 
D)  a long term, high interest rate investment C

Question 4

Your healthcare facility is choosing a bank and has narrowed the selection to two banks. Bank A has lower checking account-related fees but higher interest charges for short term loans than Bank B. Both banks are equal in all other respects. What factors will affect the final choice of bank?

Accepted Answer

The two factors are the estimated checki

Question 5

Which of the following statements about a single payment loan is correct?

Accepted Answer

A)  It typically is due in 2-10 years. 
B)  It typically has a variable interest rate tied to an index. 
C)  It cannot be repaid before the due date. 
D)  Its payment amount is known when the loan is approved. 
A)  It typically is due in 2-10 years. 
B)  It typically has a variable interest rate tied to an index. 
C)  It cannot be repaid before the due date. 
D)  Its payment amount is known when the loan is approved.

Question 6

Which of the following factors will generally result in a higher rate of interest on an investment?

Accepted Answer

A)  longer term 
B)  shorter term 
C)  lower risk 
D)  greater liquidity 
A)  longer term 
B)  shorter term 
C)  lower risk 
D)  greater liquidity

Question 7

The American Recovery and Reinvestment Act of 2009 ____.

Accepted Answer

A)  allowed corporations to stretch out depreciation on capital assets 
B)  exempted healthcare corporation bonds from federal taxes on interest 
C)  provided funds for computerization of healthcare records 
D)  provided tax credits to for-profit hospitals that refurbished their buildings 
A)  allowed corporations to stretch out depreciation on capital assets 
B)  exempted healthcare corporation bonds from federal taxes on interest 
C)  provided funds for computerization of healthcare records 
D)  provided tax credits to for-profit hospitals that refurbished their buildings

Question 8

A municipal bond can be issued by a ____.

Accepted Answer

A)  not-for-profit hospital 
B)  medical facility owned by the federal government 
C)  state government 
D)  county hospital 
A)  not-for-profit hospital 
B)  medical facility owned by the federal government 
C)  state government 
D)  county hospital

Question 9

The face amount of a bond is ____.

Accepted Answer

A)  its interest rate 
B)  the amount a bond holder will receive in payment 
C)  the par value 
D)  its permanent resale value 
A)  its interest rate 
B)  the amount a bond holder will receive in payment 
C)  the par value 
D)  its permanent resale value

Question 10

A large healthcare corporation borrows $50,000,000 to buy an existing facility. The loan has a variable interest rate pegged to LIBOR. At the end of this month, how can the corporate accountant determine what the interest payment will be?

Accepted Answer

A)  He can look at the schedule of loan payments created when the loan was made. 
B)  He can calculate interest from the outstanding principal and the LIBOR value. 
C)  He must wait for the loan statement from the lending bank. 
D)  He can calculate the difference between the loan principal and the future value. 
A)  He can look at the schedule of loan payments created when the loan was made. 
B)  He can calculate interest from the outstanding principal and the LIBOR value. 
C)  He must wait for the loan statement from the lending bank. 
D)  He can calculate the difference between the loan principal and the future value.

Question 11

The securities dealer who brings a bond to market is called the ____________________.

Accepted Answer

The answer of The securities dealer who brings a bond...

Question 12

When a large healthcare corporation wants to establish a relationship with a commercial bank, it prepares and sends a(n) _______________to commercial banks.

Accepted Answer

Request for Proposal

Question 13

A medical practice invests money in a five-year treasury note with a 3% interest rate. Three years later, the practice needs money and sells the note. Which of the following will most reduce the sale value of the treasury note?

Accepted Answer

A)  Newly issued five-year treasury notes with 2% interest rates 
B)  Newly issued two-year treasury notes with 4.5% interest rates 
C)  A 1% increase in the prime rate 
D)  A 1% fall in the prime rate 
A)  Newly issued five-year treasury notes with 2% interest rates 
B)  Newly issued two-year treasury notes with 4.5% interest rates 
C)  A 1% increase in the prime rate 
D)  A 1% fall in the prime rate

Question 14

Industrial Development Revenue Bonds ____.

Accepted Answer

A)  can be issued by for-profit corporations 
B)  can be issued by municipalities as tax exempt bonds 
C)  pay taxable interest to bond holders 
D)  receive the credit rating of the issuing local government 
A)  can be issued by for-profit corporations 
B)  can be issued by municipalities as tax exempt bonds 
C)  pay taxable interest to bond holders 
D)  receive the credit rating of the issuing local government

Question 15

A healthcare facility has a $100,000 line of credit from its bank. It regularly pays interest on the $100,000.

Accepted Answer

A) True 
 B)False

Question 16

A business has a lump sum of cash available for investment for two years. Describe how to use future value calculations to compare investment options that have different periods and different interest rates.

Accepted Answer

Calculate the future value at 2 years (2

Question 17

The time value of money is based on the concept of ____.

Accepted Answer

A)  inflation 
B)  interest 
C)  interest minus inflation 
D)  interest plus inflation 
A)  inflation 
B)  interest 
C)  interest minus inflation 
D)  interest plus inflation

Question 18

The Rule of 72 ____.

Accepted Answer

A)  is a requirement that corporate board members be at least 72 years old 
B)  was a federal law about hospital bonds passed in 1972 
C)  is a quick way to estimate doubling time for fixed interest investments 
D)  is a component of the generally accepted accounting principles 
A)  is a requirement that corporate board members be at least 72 years old 
B)  was a federal law about hospital bonds passed in 1972 
C)  is a quick way to estimate doubling time for fixed interest investments 
D)  is a component of the generally accepted accounting principles

Question 19

The Federal National Mortgage Association is ____.

Accepted Answer

A)  a federal agency that directly lends money to home buyers 
B)  a government secured enterprise that buys mortgages and sells securities 
C)  a trade organization of national banks and mortgage lenders 
D)  a federal agency that regulates bank mortgages 
A)  a federal agency that directly lends money to home buyers 
B)  a government secured enterprise that buys mortgages and sells securities 
C)  a trade organization of national banks and mortgage lenders 
D)  a federal agency that regulates bank mortgages

Question 20

Bond insurance protects the bond issuer and the bond buyers.

Accepted Answer

A) True 
 B)False

United States Treasury bills at the time of issue are ____.

A loan with a fixed rate of interest that will be repaid with regular payments over two or more years is called a(n) ____________________.

A chartered bank's certificate of deposit is ____.

Your healthcare facility is choosing a bank and has narrowed the selection to two banks. Bank A has lower checking account-related fees but higher interest charges for short term loans than Bank B. Both banks are equal in all other respects. What factors will affect the final choice of bank?

Which of the following statements about a single payment loan is correct?

Which of the following factors will generally result in a higher rate of interest on an investment?

The American Recovery and Reinvestment Act of 2009 ____.

A municipal bond can be issued by a ____.

The face amount of a bond is ____.

A large healthcare corporation borrows $50,000,000 to buy an existing facility. The loan has a variable interest rate pegged to LIBOR. At the end of this month, how can the corporate accountant determine what the interest payment will be?

The securities dealer who brings a bond to market is called the ____________________.

When a large healthcare corporation wants to establish a relationship with a commercial bank, it prepares and sends a(n) _______________to commercial banks.

A medical practice invests money in a five-year treasury note with a 3% interest rate. Three years later, the practice needs money and sells the note. Which of the following will most reduce the sale value of the treasury note?

Industrial Development Revenue Bonds ____.

A healthcare facility has a $100,000 line of credit from its bank. It regularly pays interest on the $100,000.

A business has a lump sum of cash available for investment for two years. Describe how to use future value calculations to compare investment options that have different periods and different interest rates.

The time value of money is based on the concept of ____.

The Rule of 72 ____.

The Federal National Mortgage Association is ____.

Bond insurance protects the bond issuer and the bond buyers.

The Environment of Healthcare Finance

Paying for Healthcare

The Rising Costs of Medical Services and Healthcare Reform

Basic Accounting Concepts

Accounting and the Financial Management Process

The Balance Sheet

The Income Statement

Budgets

Cash Management

Revenue Cycle Management

Managing Financial Risk

Financial Management of Health Information Technology

Filters

Exam 10: Investing, Borrowing, and the Time Value of Money

United States Treasury bills at the time of issue are ____.

A loan with a fixed rate of interest that will be repaid with regular payments over two or more years is called a(n) ____________________.

A chartered bank's certificate of deposit is ____.

Your healthcare facility is choosing a bank and has narrowed the selection to two banks. Bank A has lower checking account-related fees but higher interest charges for short term loans than Bank B. Both banks are equal in all other respects. What factors will affect the final choice of bank?

Which of the following statements about a single payment loan is correct?

Which of the following factors will generally result in a higher rate of interest on an investment?

The American Recovery and Reinvestment Act of 2009 ____.

A municipal bond can be issued by a ____.

The face amount of a bond is ____.

A large healthcare corporation borrows $50,000,000 to buy an existing facility. The loan has a variable interest rate pegged to LIBOR. At the end of this month, how can the corporate accountant determine what the interest payment will be?

The securities dealer who brings a bond to market is called the ____________________.

When a large healthcare corporation wants to establish a relationship with a commercial bank, it prepares and sends a(n) _______________to commercial banks.

A medical practice invests money in a five-year treasury note with a 3% interest rate. Three years later, the practice needs money and sells the note. Which of the following will most reduce the sale value of the treasury note?

Industrial Development Revenue Bonds ____.

A healthcare facility has a $100,000 line of credit from its bank. It regularly pays interest on the $100,000.

A business has a lump sum of cash available for investment for two years. Describe how to use future value calculations to compare investment options that have different periods and different interest rates.

The time value of money is based on the concept of ____.

The Rule of 72 ____.

The Federal National Mortgage Association is ____.

Bond insurance protects the bond issuer and the bond buyers.

The Environment of Healthcare Finance

Paying for Healthcare

The Rising Costs of Medical Services and Healthcare Reform

Basic Accounting Concepts

Accounting and the Financial Management Process

The Balance Sheet

The Income Statement

Budgets

Cash Management

Revenue Cycle Management

Managing Financial Risk

Financial Management of Health Information Technology

Filters