Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)With a discount loan,the borrower is required to pay the interest at the end of the loan period.
• B)Bridge loans are often quoted as discount loans with fixed interest rates.
• C)A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing.
• D)After a natural disaster,lenders may provide businesses with short-term loans to serve as bridges until they receive insurance payments or long-term disaster relief.

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Definitions:

Diminishing Marginal Returns

Describes a point in production where the addition of one more unit of input results in a less than proportional increase in output.

Per-unit Costs

Refer to the average cost for each unit of a product or service that is produced, including all relevant expenses.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.