If a Person Is Going to Pay $500 Per Month

question 60

Multiple Choice

If a person is going to pay $500 per month every month for 5 years, what do you know about their car loan (if the interest rate is positive) ?

• A)Nothing.
• B)The loan amount was more than $30,000.
• C)The loan amount was exactly $30,000.
• D)The loan amount was less than $30,000.

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Definitions:

Agency "Captives"

refers to subsidiary companies created by one or more parent companies to provide insurance coverage for themselves.

Agency Independence

The degree of autonomy and freedom from external control and influence that an administrative agency has, allowing it to operate without political pressure.

Separation of Power

A constitutional principle that divides the responsibilities of government among distinct branches to prevent the concentration of power and ensure checks and balances.

Legislative Branch

One of the three branches of the U.S. government, responsible for making and enacting laws, consisting of the Senate and the House of Representatives.