Which One of the Following Statements Is Correct

question 28

Multiple Choice

Which one of the following statements is correct?

• A)The APR is equal to the EAR for a loan that charges interest monthly.
• B)The EAR is always greater than the APR.
• C)The APR on a monthly loan is equal to (1 + monthly interest rate)¹²- 1.
• D)The APR is the best measure of the actual rate you are paying on a loan.
• E)The EAR, rather than the APR, should be used to compare both investment and loan options.

---

Definitions:

Culture

Material and symbolic tools that accumulate through time, are passed on through social processes, and provide resources for the developing child.

Psychosocial Development

The process by which an individual's psychological and social aspects develop through their lifespan.

Erikson's Stages

A theory proposed by Erik Erikson that outlines eight stages of psychosocial development through which a healthy developing individual should pass from infancy to late adulthood.

Social Group

A collection of individuals bound by common interests, values, or social ties, interacting within a defined structure.