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.

Understand the significance of financial ratios and their impact on business decision-making.

Identify and differentiate between types of financial ratios such as liquidity, activity, leverage, and profitability ratios.

Apply financial ratio analysis for assessing a firm’s short-term solvency through liquidity ratios.

Utilize financial ratios to evaluate a firm's efficiency in asset management through activity ratios.

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Definitions:

Abuse

The maltreatment of a person or animal, which can be physical, emotional, sexual, or neglect, leading to harm or suffering.

Jeffrey Arnett

A psychologist known for his research on emerging adulthood, a developmental stage between adolescence and full-fledged adulthood.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood, typically from the late teens through the twenties, marked by exploration and self-discovery.

Features

Distinctive attributes or aspects of something or someone that help in identification and description.