Which of the Below Statements Is FALSE

question 11

Multiple Choice

Which of the below statements is FALSE?

• A) Investors purchasing financial assets should take the time to develop skills necessary to understand how to evaluate an investment and then apply these skills to the analysis of specific financial assets that are candidates for purchase (or subsequent sale).
• B) Investors who want to make a loan to a consumer or business will need to write the loan contract (or hire an attorney to do so). Although there are some people who enjoy devoting leisure time to this task, most prefer to use that time for just that-leisure.
• C) In addition to the opportunity cost of the time to process the information about the financial asset and its issuer, there is the cost of acquiring that information. All these costs are called contracting costs.
• D) One dimension to contracting costs involves the cost of enforcing the terms of the loan agreement.

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Definitions:

Tibia

A large bone located in the lower leg, also known as the shinbone, which bears much of the body's weight.

Hip Bone

A large bone in the pelvic area, formed by the fusion of three bones - the ilium, ischium, and pubis - and plays a key role in supporting the body’s weight in sitting and standing.

Os Coxa

The hip bone, part of the pelvic girdle, comprising the ilium, ischium, and pubis bones fused together.

Innominate Bone

Another term for the hip bone, comprising the ilium, ischium, and pubis, which are fused in adults.