Choose the Statement That Is Incorrect

question 50

Multiple Choice

Choose the statement that is incorrect.

• A)A bond that you buy for $50 and pays you $5 a year has an interest rate of 10 percent a year.
• B)Stocks, bonds, short- term securities, and loans are financial assets.
• C)If the asset price rises, other things remaining the same, the interest rate falls.
• D)The price of an asset is determined first, then the interest rate is determined.
• E)The interest rate on a financial asset is the interest received expressed as a percentage of the price of the asset.

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Definitions:

Ponzi Scheme

A deceitful investment scheme that offers high returns with minimal risk to investors, and funds payouts to initial investors through the recruitment of new participants.

Miranda v. Arizona

A landmark Supreme Court case establishing that criminal suspects must be informed of their rights upon arrest, including the right to remain silent.

Right to Remain Silent

A legal principle that protects individuals from being compelled to testify or provide information that may incriminate themselves.

Right to an Attorney

The legal entitlement of individuals accused of crimes to have legal representation, whether provided by themselves or, if they are unable to afford one, appointed by the court.