The ________ the APR, the ________ the True Cost of Credit

question 100

Multiple Choice

The ________ the APR, the ________ the true cost of credit.

• A) lower; higher
• B) lower; lower
• C) higher; lower
• D) None of these answer choices are correct.

---

Definitions:

Capital Cost Allowance (CCA)

Depreciation for tax purposes, not necessarily the same as depreciation under International Financial Reporting Standards; depreciation method under Canadian tax law allowing for the accelerated write-off of property under various classifications.

After-Tax Operating Income

The income a company generates from its operations after subtracting taxes.

Required Return

The minimum expected return by investors for investing in a particular security or project, reflecting the risk level.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the short-term.