Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A) The effective annual rate indicates the amount of interest that will be earned at the end of one year.
• B) The annual percentage rate indicates the amount of simple interest earned in one year.
• C) The annual percentage rate indicates the amount of interest including the effect of compounding.
• D) Because interest rates may be quoted for different time intervals, it is often necessary to adjust the interest rate to a time period that matches that of our cash flows.

---

Definitions:

Unionization

The process by which employees come together to form a union, a collective organization that negotiates with employers on behalf of its members for better wages, benefits, and working conditions.

Labour Relations Board

A governmental agency that manages disputes and issues related to labor laws and collective bargaining agreements.

Membership Support

Assistance and services provided to members of an organization, club, or online platform, often including access to exclusive resources, helpdesks, and community features.

Union Formation

The process of organizing a group of workers into a union to negotiate collectively with their employer regarding wages, working conditions, and other employment rights.