Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.
• B) The Bank of Canada determines very short-term interest rates through its influence on the federal funds rate.
• C) The interest rates that are quoted by banks and other financial institutions are nominal interest rates.
• D) Fundamentally, interest rates are determined by the Bank of Canada.

---

Definitions:

General Partner

In a partnership, the partner who has unlimited liability for the debts of the business and takes part in the management of the business.

LLLP

stands for Limited Liability Limited Partnership, a form of partnership that combines the elements of limited partnerships and limited liability partnerships, providing limited liability to all its partners.

General Partner

A member of a partnership who has unlimited personal liability for the debts and obligations of the partnership, and who has the authority to act on behalf of the partnership in management matters.

Limited Partnership

A form of partnership consisting of at least one general partner who manages the business and is personally liable for partnership debts, and one or more limited partners who provide capital and whose liability is limited to the amount of their investment.