Which of the Following Statements Is Not True

question 58

Multiple Choice

Which of the following statements is not true?

• A) You should use all of your liquid assets to pay off loans.
• B) Paying off loans is appropriate when the interest rate is relatively high.
• C) Paying off loans is wise when the expected rate you will earn on investments is lower than the interest rate on the loan.
• D) Loan payments you make restrict your spending and saving and may prevent you from achieving financial goals.

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Definitions:

Sarbanes-Oxley Act

A US federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aimed at improving corporate governance and accountability.

Corporate Responsibility

The ethical obligation of companies to act in a manner beneficial to society, including environmental stewardship, fair treatment of employees, and corporate governance.

Interstate Commerce

Refers to the trade, traffic, or transportation of goods, services, or money that crosses state boundaries within the United States.

Intrastate Commerce

Economic activities or transactions that occur entirely within a single state's borders, as opposed to interstate commerce, which involves multiple states.