Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) The equivalent after-tax interest rate is r - (τ × r).
• B) Interest rates vary based on the identity of the borrower.
• C) The ability to deduct the interest expense increases the effective after-tax interest rate paid on the loan.
• D) For loans to borrowers other than the Treasury Bills of the Government of Canada the stated interest rate is the maximum amount that investors will receive.

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Definitions:

Greenwich

A district in London, known for its maritime history and as the location of the Prime Meridian, from which Greenwich Mean Time is calculated.

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GMT

Greenwich Mean Time, a time zone that is used as the standard time against which all other time zones are measured.

Historical Reference

An instance of referring to past events, individuals, or periods for purposes of context or analysis.