Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) When we refer to the "risk-free interest rate," we mean the rate on U.S. Treasuries.
• B) Interest rates vary with the investment horizon.
• C) All borrowers, besides the U.S. Treasury, have some risk of default.
• D) When interest on a loan is tax deductible, the effective after-tax interest rate is τ × (1 - r).

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Definitions:

Moral Worth

The inherent value of an action or person, based on ethics and morality.

Courage

The ability to overcome fear and live (or die) by one’s convictions, even in ambiguous, uncertain, and dangerous situations; the virtue that underlies and gives reality to all other values; the basis for moral worth and dignity.

Dignity

The inherent worth and respect that every individual deserves, regardless of their status, achievements, or abilities.

Superordinate Quality

Attributes or characteristics that elevate or distinguish something as superior or of higher status compared to others in its category.