Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) U.S. Treasury securities are widely regarded to be risk-free because there is virtually no chance the government will default on these bonds.
• B) In general, if the interest rate is r and the tax rate is τ, then for each $1 invested you will earn interest equal to r and owe taxes of τ × r on the interest.
• C) Investors may receive less than the stated interest rate if the borrowing company has financial difficulties and is unable to fully repay the loan.
• D) Taxes reduce the amount of interest the investor can keep, and we refer to this reduced amount as the tax effective interest rate.

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Definitions:

Administrative Assistant

A professional responsible for managing office tasks and supporting executives or staff.

Coordinating Conjunction

A coordinating conjunction is a word used in grammar to connect words, phrases, or clauses that are equally important or similar in structure.

Punctuated Correctly

Ensuring text follows standard rules of punctuation for clarity, readability, and correctness in written communication.

Du Pont

An American conglomerate founded in 1802, known historically for its development and manufacturing of chemicals and products related to agriculture, electronics, industrial biosciences, and performance materials.