Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A) U.S.Treasury securities with relevant maturities are used as the basic cost of money and lenders add premiums for risk and other factors.
• B) Some lenders determine a prospective borrower's risk class and determine the rates charged on loans with similar maturities by firms in the same risk class.
• C) All borrowers are charge the same rate regardless of their risk class.
• D) Both (a)and (b)are true
• E) None of the above statements are true.

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Definitions:

Layoffs

The temporary or permanent dismissal of employees from their jobs due to economic downturns, business restructurings, or other financial reasons.

Volume Efficiency

The effective management of resources to produce the maximum possible output or volume of production at the lowest cost.

Expense Ratio

A measure of the cost of operating a fund, such as a mutual fund or an exchange-traded fund, expressed as a percentage of the fund's assets.

Employee Contentment

Employee Contentment refers to the level of satisfaction and well-being that employees feel about their job, work environment, and relationship with their employer.