Objective Questions and Answers of Civil Engineering: Engineering Economics 5

Subject: Engineering Economics 5

**Part 5: Objective questions and answers of Engineering Economics**

**Q1. What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?**

a) Utility

b) Necessity

c) Commodity

d) Stock

**Q2. Which is NOT an essential element of an ordinary annuity?**

a) The amounts of all payments are equal.

b) The payments are made at equal interval of time.

c) The first payment is made at the beginning of the first period.

d) Compound interest is paid on all amounts in the annuity.

**Q3. The difference between the present and future worth of money at some time in the future is called ______.**

a) Discount

b) Deduction

c) Inflation

d) Depletion

**Q4. What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?**

a) Effective rate of interest

b) Nominal rate of interest

c) Compound interest

d) Simple interest

**Q5. What is the type of annuity where the payments are made at the end of each period starting from the first period?**

a) Ordinary annuity

b) Perpetuity

c) Annuity due

d) Deferred annuity

**Q6. One banker’s year is equivalent to ______ days.**

a) 300

b) 360

c) 365

d) 366

**Q7. What refers to the amount of money paid for the use of borrowed capital?**

a) Interest

b) Rate of interest

c) Simple interest

d) Principal

**Q8. A uniform series of payment occurring at equal interval of time is called ______.**

a) Annuity

b) Amortization

c) Depreciation

d) Bond

**Q9. What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?**

a) Ordinary annuity

b) Perpetuity

c) Annuity due

d) Deferred annuity

**Q10. What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?**

a) Par value of bond

b) Face value of bond

c) Redeemed value of bond

d) Value of bond

**Q11. Under ordinary simple interest, how many days in one year?**

a) 300

b) 360

c) 365

d) 366

** **

**Q12. What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?**

a) Present worth factor

b) Interest rate

c) Time value of money

d) Yield

**Q13. What refers to the present worth of the probable future net earnings?**

a) Total fair value

b) Total market value

c) Going concern value

d) Earning value

**Q14. What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?**

a) Return of investment

b) Interest rate

c) Yield

d) Rate of return

**Q15. What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?**

a) Yield rate

b) Rate of return

c) Rate of interest

d) Economic return

**Q16. What is the term for an annuity with a fixed time span?**

a) Ordinary annuity

b) Perpetuity

c) Annuity certain

d) Annuity due

**Q17. What is the type of annuity where the payments are made at the beginning of the each period starting from the first period?**

a) Ordinary annuity

b) Perpetuity

c) Annuity due

d) Deferred annuity

**Q18. What is the type of annuity where the first payment does not begin until some later date in the cash flow?**

a) Ordinary annuity

b) Perpetuity

c) Annuity due

d) Deferred annuity

**Q19. What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?**

a) T-bills

b) Securities

c) Bond

d) Bank notes

**Q20. What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?**

a) Bond

b) T-bills

c) Stock

d) Promissory note

**Part 5: Objective questions and answers of Engineering Economics**

Q1. Answer c

Q2. Answer c

Q3. Answer a

Q4. Answer c

Q5. Answer a

Q6. Answer b

Q7. Answer a

Q8. Answer a

Q9. Answer b

Q10. Answer d

Q11. Answer b

Q12. Answer c

Q13. Answer d

Q14. Answer b

Q15. Answer c

Q16. Answer c

Q17. Answer c

Q18. Answer d

Q19. Answer c

Q20. Answer a