Which of the Following Statements About Annual Percentage Rate (APR)

question 27

Multiple Choice

Which of the following statements about annual percentage rate (APR) and effective annual rate (EAR) are not true?

• A) The annual percentage rate (APR) is considered a more accurate measurement of what you will actually pay.
• B) Lenders are legally required to show potential borrowers the effective annual rate (EAR) on any loan offered.
• C) The difference between APR and EAR is not that large.
• D) None of the above are untrue statements.

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Definitions:

Universality

The ability to be applied or relevant in all cases, or the notion that certain concepts hold true across all cultures and situations.

Schizophrenia

A psychological condition marked by unusual conduct, peculiar speech, and a diminished capacity to grasp reality.

Waxy Flexibility

A state wherein a person’s limbs and posture can be “moulded” into different positions as if the person were made of wax. Occasionally seen in schizophrenia.

Catatonic Posturing

A symptom of certain mental conditions where a person maintains unusual, fixed body positions for a long time.