Which of the Following Statements Is FALSE

question 9

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.

---

Definitions:

Highest Occupied

Refers to the Highest Occupied Molecular Orbital (HOMO), which is the top-most energy molecular orbital that is occupied by electrons in a molecule under the ground state.

π MO

Pi molecular orbitals are formed by the overlap of p orbitals that are oriented parallel to each other, playing a key role in the bonding of molecules with conjugated systems.

1,3-Butadiene

A basic conjugated diene having the chemical structure C4H6, utilized as a monomer for synthesizing synthetic rubber.

Stepwise Mechanism

A reaction mechanism in chemistry that occurs through multiple discrete steps, each with its own transition state and intermediates.