Day: February 27, 2025

Accounting Multiple Choice Question – 27 February 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex has the choice of two investments carrying similar levels of risk – one is short-term and the other is a long-term bond.

Alex would expect the interest on the longer-term bond to be?

Select ONE answer:

  1. Normally higher
  2. Lower
  3. Normally the same
  4. Impossible to tell

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct == > The long-term interest rate is normally but not always higher than the short-term rate.
  2. Not correct
  3. Not correct
  4. Not correct

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