Which of the Following Is True

question 188

Multiple Choice

Which of the following is true?

• A) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.
• B) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
• C) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
• D) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.

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Definitions:

Acronym Method

A mnemonic device that involves using the initials of information to be remembered to form a word or phrase.

Link Method

A memory technique where you visualize items to be remembered in a way that they are linked together by a story or association.

Method of Loci

A mnemonic strategy of memory enhancement which uses visualizations with the use of spatial memory, familiar information about one's environment, to quickly and efficiently recall information.

Acrostic Method

A mnemonic device that uses the first letters of words in a list to form a sentence or phrase, aiding in memory retention.