Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)The plot of the relationship between the investment risk and the interest rate is call the yield curve.
• B)Each of the last six recessions in the United States was preceded by a period with an inverted yield curve.
• C)The nominal interest rate does not represent the increase in purchasing power that will result from investing.
• D)A risk-free cash flow received in two years should be discounted at the two-year interest rate.

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The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.