Regarding Student Loans,which of the Following Is True

question 157

Multiple Choice

Regarding student loans,which of the following is true?

• A) They are available only for undergraduate.
• B) Parents (or legal guardians)must cosign.
• C) There is a limit on how much can be borrowed.
• D) There is a limit on the number of loans one can have.
• E) Interest does not have to be repaid.

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Definitions:

Lump Sum Subsidy

A fixed amount of money provided by the government or a body to support a business or market, which does not change with the level of output.

Per-Unit Subsidy

A financial incentive given by the government, reducing the cost of each unit of a good or service to either the producer or consumer.

Profit Maximization

A business objective to achieve the highest possible profit from operations, often by adjusting production, prices, and other variables.

Competitive Industry

An industry structure where many firms compete for market share, with no single company dominating the market.