Which of the Following Generalizations Is False? Other Things Equal

question 51

Multiple Choice

Which of the following generalizations is false? Other things equal,

• A) interest rates are higher if lenders are imperfectly, rather than purely, competitive.
• B) the interest rate is less on small loans than on larger loans.
• C) long-term loans normally command higher interest rates than short-term loans.
• D) the greater the risk on a loan, the greater the interest rate.

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Definitions:

Express

Directly stated or explicitly declared, often used in legal and contractual contexts to describe terms or intentions that are clearly communicated.

Contract

A legally binding agreement between two or more parties, outlining obligations and rights.

Substantial Performance

A legal principle indicating that a party has fulfilled enough of its contractual obligations to warrant payment, even if minor details were not completed as specified.

Conditional Contract

An agreement where the obligations or terms are only to be fulfilled if certain conditions are met.