Which One of the Following Statements Is Correct

question 28

Multiple Choice

Which one of the following statements is correct?

• A)The APR is equal to the EAR for a loan that charges interest monthly.
• B)The EAR is always greater than the APR.
• C)The APR on a monthly loan is equal to (1 + monthly interest rate)¹²- 1.
• D)The APR is the best measure of the actual rate you are paying on a loan.
• E)The EAR, rather than the APR, should be used to compare both investment and loan options.

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Definitions:

Bureaucratic Structure

An organizational structure characterized by fixed divisions of labor, a hierarchy of authority, and detailed rules and regulations guiding operations.

Worker Empowerment

The process of giving employees authority, resources, and skills to make decisions and contribute to the organization's success independently.

Entrusting Work

Delegating tasks or responsibilities to another individual or team, often with a level of confidence in their capabilities.

Delegation

The process of distributing and entrusting work to others.