Which of the Following Generalizations Is False? Other Things Equal

question 227

Multiple Choice

Which of the following generalizations is false? Other things equal,

• A)interest rates are higher if lenders are imperfectly, rather than purely, competitive.
• B)the interest rate is less on small loans than on larger loans.
• C)long-term loans normally command higher interest rates than short-term loans.
• D)the greater the risk on a loan, the greater the interest rate.

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Definitions:

Money

A medium of exchange in the form of coins and banknotes; used to facilitate transactions for goods, services, and debts.

Food

Nutritious substances that organisms consume or absorb in order to maintain life and growth.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans.

Positive Reinforcement

A process in which presenting a stimulus following a behavior increases the likelihood of the behavior occurring again.