Which One of These Characteristics Does Not Apply to a Financial

question 23

Multiple Choice

Which one of these characteristics does not apply to a financial lease?

• A)The lease is usually not fully amortized.
• B)The lessee is responsible for the maintenance of the leased assets.
• C)Generally,the lease cannot be cancelled.
• D)The lessee usually has the right to renew the lease on expiration.
• E)The lessee must pay all the lease payments.

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Definitions:

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.

World Trade Organization

An international body that deals with the rules of trade between nations, aiming to ensure that global trade flows smoothly, predictably, and freely.

Negotiations

The process by which two or more parties come together to discuss and reach a mutually beneficial agreement.

Lender of Last Resort

An institution, usually a central bank, that offers loans to banks or other eligible institutions that are in financial difficulty or are considered critical to the financial system.