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:

Bilateral Negotiations

A negotiation process involving two parties directly interacting to reach an agreement or resolve disputes, without involving intermediaries.

Nonunion Setting

A workplace or employment environment where no labor union is present to represent the workers.

Formal Dispute Procedure

Structured processes and guidelines followed by organizations and employees to resolve work-related disputes or grievances.

Binding Arbitration

A dispute resolution process where an arbitrator's decision is final and legally binding on both parties, without the option for appeal.