Chapter Review: True or False Quiz

This online quiz contains 5 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1		Inflated dollars can be converted to constant-value dollars by dividing by one plus the inflation rate for each year.
			A)	TRUE
			B)	FALSE
2		Constant-value dollars means the same thing as today's dollars.
			A)	TRUE
			B)	FALSE
3		The real interest rate is also known as the inflation-free interest rate.
			A)	TRUE
			B)	FALSE
4		The real interest rate is a function of the inflation rate.
			A)	TRUE
			B)	FALSE
5		The present worth of an alternative can be determined by dividing then-current dollars by the inflation rate and then using the inflated interest rate in the present worth formulas.
			A)	TRUE
			B)	FALSE