Which of the Following Is NOT True of a Fixed

question 11

Multiple Choice

Which of the following is NOT true of a fixed payment loan?

• A)The borrower is required to make regular periodic payments to the lender.
• B)The payments made by the borrower include both interest and principal.
• C)The borrower is left with a substantial unpaid principal at the maturity of the loan.
• D)A home mortgage is an example of fixed payment loan.

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Definitions:

Conglomerate Merger

A type of merger where two or more companies in unrelated business sectors combine.

Monopolizing

involves the domination of a market by a single producer or company, reducing competition and potentially controlling prices and supply in that market.

Abusive Means

Practices or methods that are harmful, manipulative, or intended to exploit or oppress individuals or groups.

Herfindahl Index

A measure of market concentration that calculates the sum of the squares of the market shares of the firms within an industry, used to assess the competition level.