Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)The prime rate is the rate banks charge other banks.
• B)With a variable interest rate,the terms of the loan may indicate that the rate will vary with some spread relative to a benchmark rate,such as the yield on one-year Treasury securities or the prime rate.
• C)With a discount loan,the borrower is required to pay the interest at the beginning of the loan period.
• D)A common benchmark rate is the London Inter-Bank Offered Rate,or LIBOR,which is the rate of interest at which banks borrow funds from each other in the London inter-bank market.

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Definitions:

Sample Mean

The average obtained from a sample, calculated by summing all sample data points and dividing by the number of points.

Null Hypothesis

A statement or assumption that there is no effect or no difference, and is the hypothesis that researchers aim to test against.

Hypothesized Value

A specific value or condition proposed in a hypothesis that is tested through statistical analysis.

One-Tail Test

A type of statistical hypothesis test where the rejection area is located on just one side of the sampling distribution.