Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A)Ceteris paribus, the longer the term of a loan, the lower the interest rate.
• B)The nominal interest rate is the interest rate adjusted for expected inflation.
• C)Loans that cost more to process and administer will come with higher interest rates than loans that cost less to process.
• D)a and b
• E)none of the above

---

Definitions:

Required Production

The quantity of goods a business needs to produce in a specified period to meet sales forecasts and maintain desired inventory levels.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Budgeted Sales

The projected amount of sales, in units or revenue, a company expects to achieve during a specific period, often used for planning and performance evaluation purposes.

Merchandise Inventory

Represents the goods a company has in stock that are available for sale to customers.