Which of the Following Statements Is Not True of a Financial

question 65

Multiple Choice

Which of the following statements is not true of a financial lease?

• A)It can be cancelled after the equipment is no longer needed
• B)It is a source of financing
• C)It is binding obligation for the lessee
• D)It lessee has the asset for most of its economic life

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Definitions:

Contractionary Policy

Economic policies intended to reduce spending and slow down inflation, often through increased interest rates or reduced government spending.

Banking System

The network of institutions, including commercial banks, central banks, and other financial intermediaries, that provide banking services and facilitate financial transactions within an economy.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to fund federal government spending, including Treasury bonds, notes, and bills.

Bank's Assets

refer to the resources owned by a bank, including loans, investments, cash, and other valuables.