Which One of the Following Statements Is Incorrect

question 10

Multiple Choice

Which one of the following statements is incorrect?

• A)APR is the true effective annual interest charged by sellers
• B)The Truth in Lending Act regulates interest charges
• C)APR represents the true effective annual rate of interest
• D)An installment loan is paid off with a series of equal periodic payments
• E)None of these

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Definitions:

Cost-Benefit Analysis

An economic evaluation method that compares the relative costs and benefits associated with a proposed project or decision.

Opportunity Cost

The worth of the best alternative given up when a decision is made.

Cost-Benefit Analysis

An evaluation process that compares the costs and benefits of a decision or project to determine its feasibility or worth.

National Defense

Activities and measures taken by a government to protect its country from external threats and ensure national security.