topic 1

Question 1

a linear representation of the timing of potential cash
flows

Answer 1

timeline

Question 2

are represented by positive numbers

Answer 2

inflow

Question 3

are represented by negative numbers

Answer 3

outflow

Question 4

converts money’s time units back in time

Answer 4

discounting

Question 5

converts money’s time units forward in time

Answer 5

compounding