Which of the Statements Below Is FALSE

question 44

Multiple Choice

Which of the statements below is FALSE?

• A)An advertised rate is a nominal rate.
• B)An advertised rate can be referred to as the annual percentage rate or annual percentage yield.
• C)An advertised rate can be referred to as the APR or APY.
• D)When you visit any financial institution,you will see only one advertised rate.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Total Utility

The total satisfaction or benefit obtained from consuming a given quantity of goods or services.

Marginal Utility

The added satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Total Utility

This term refers to the total satisfaction received by consuming a certain amount of goods or services.