Which of the Following Statements Is False

question 56

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 Government of Canada the stated interest rate is the maximum amount that investors will receive.

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Definitions:

Circular Thinking

A form of reasoning in which the conclusion is pre-assumed in one of the premises, often leading nowhere or to logical fallacies.

Imaging

A technique used to visualize the internal structures of the body for diagnostic purposes.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.

Availability Heuristic

An instinctive heuristic that uses the readily accessible instances that occur to someone as they assess a distinct theme, notion, strategy, or judgement.