Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)U.S.Treasury securities are widely regarded to be risk-free because there is virtually no chance the government will default on these bonds.
• B)In general,if the interest rate is r and the tax rate is τ,then for each $1 invested you will earn interest equal to r and owe taxes of τ × r on the interest.
• C)Investors may receive less than the stated interest rate if the borrowing company has financial difficulties and is unable to fully repay the loan.
• D)Taxes reduce the amount of interest the investor can keep,and we refer to this reduced amount as the tax effective interest rate.

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Definitions:

Remedial Seniority

A legal or policy provision granting certain employees priority in job reinstatement or promotion, often as a remedy in discrimination or labor disputes.

Compensatory Damages

Money awarded to a plaintiff as reimbursement for her or his losses; based on the amount of actual damage or harm to property, lost wages or profits, pain and suffering, medical expenses, disability, and so on.

Disparate-Treatment Discrimination

A form of discrimination where an individual is treated less favorably than others based on a protected characteristic.

Title VII

A segment of the 1964 Civil Rights Act that bars discrimination in the workplace on the grounds of race, skin color, faith, gender, or national background.