Which of the Statements Below Is FALSE

question 47

Multiple Choice

Which of the statements below is FALSE?

• A)If you invest money for a short period and buy a six-month CD,you will not receive as high an interest rate as if you bought a CD with a longer maturity period.
• B)The difference in rates as the borrowing time or investment horizon increases is due to the maturity premium of the investments.
• C)The maturity premium represents that portion of the yield that compensates the investor for the additional waiting time or the lender for the additional time it takes to receive repayment in full.
• D)The longer the loan,the greater the risk of nonpayment and the lower the interest rate the lender demands.

---

Definitions:

Corporate Concentration

Describes a market condition characterized by the dominance of a small number of large firms, leading to reduced competition and potentially higher prices for consumers.

War

A state of armed conflict between different countries or different groups within a country.

Merger

The combination of two or more companies into one, either by closing the old entities into one new entity or by one company absorbing the others.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is anti-competitive, considering if it has legitimate business purposes and its overall impact on competition.