You Finished University Last Year and Have Not Been Able

question 149

Multiple Choice

You finished university last year and have not been able to find a job yet. As a result, you moved back home with your parents. At first, you were worried that the transition back would cause considerable conflict, but it has not. Although you know that this is only a temporary situation, what is one of the most likely reasons that it is going well?

• A) Your parents recognise that you are an adult and are treating you that way.
• B) Your parents have imposed quite a few 'rules' that you have to follow.
• C) You like being treated like a child again.
• D) Your parents are just pretending; they really resent you coming back home to live.

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Definitions:

Interest Revenue

Income earned from deposit accounts or investments through the interest paid by the borrower to the lender.

Incremental Borrowing Rate

The interest rate a lessee would have to pay if borrowing over a similar term, and with similar security, the funds necessary to lease or purchase an asset.

Lessor's Implicit Rate

The interest rate used in lease agreements, assumed by the lessor, that when applied to the lease payments, equals the fair value of the leased asset.