# If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:

A. 10% per annum

B. 10.10% per annum

C. 10.25% per annum

D. 10.38% per annum

**The second term for Horizontal Analysis is**

A. Dynamic Analysis

B. Inter-firm Analysis

C. Time-series Analysis

D. All of the above

**Vertical analysis is also known as**

A. Static analysis

B. Structural analysis

C. Cross-sectional analysis

D. All of the above

**Time value of money indicates that**

A. A unit of money obtained today is worth more than a unit of money obtained in future

B. A unit of money obtained today is worth less than a unit of money obtained in future

C. There is no difference in the value of money obtained today and tomorrow

D. None of the above

**Time value of money supports the comparison of cash flows recorded at different time period by**

A. Discounting all cash flows to a common point of time

B. Compounding all cash flows to a common point of time

C. Using either a or b

D. None of the above