If a Loan Is Being Paid in Installments Instead of All

question 63

Multiple Choice

If a loan is being paid in installments instead of all at the end of the loan period,the actual rate of interest

• A) Will be lower than the stated rate.
• B) Will be the same as the stated rate.
• C) Will be higher than the stated rate.
• D) Will be unrelated to the stated rate.
• E) Cannot be determined without knowing the length of the loan period.

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Definitions:

Social Dominance Orientation

is an attitude characterized by a preference for hierarchy within societies and the domination of lower-status groups by higher-status groups.

Social Order

The organized pattern of social relationships and social institutions that together compose society.

Place

A particular position, point, or area in space; a location.

System Justification Theory

A social psychological theory that proposes people are motivated to defend and justify the existing social, economic, and political arrangements.