Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)When we refer to the "risk-free interest rate," we mean the rate on U.S.Treasuries.
• B)Interest rates vary with the investment horizon.
• C)All borrowers,besides the U.S.Treasury,have some risk of default.
• D)When interest on a loan is tax deductible,the effective after-tax interest rate is τ × (1 - r).

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Definitions:

Expressions of Emotions

The outward display of feelings such as happiness, anger, or sadness through facial expressions, body language, and vocal tones.

Defensiveness

A psychological reaction characterized by a protective behavior against perceived threats or criticism.

Nurturance

The provision of care and encouragement for the growth or development of someone or something.

Affect-as-information Theory

The idea that affective states can influence judgment and decision-making by serving as a source of information.