Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

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

---

Definitions:

Target Amount

The specific financial goal or budget set for a project, initiative, or investment.

Cost Reimbursable Contract

A type of contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.

Time And Material Contracts

A contractual arrangement that pays for labor at a fixed hourly rate and materials at cost.

Project Risk

Potential problems or uncertainties that could impact the successful completion, quality, or timeline of a project.