Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Repair or Replace

This refers to the decision or policy regarding whether to fix a damaged or malfunctioning item or to substitute it with a new one.

Merchant Seller

A person or company engaged in the selling of goods, especially on a large scale and dealing with customers who are themselves involved in trade.

Express Warranty

A written guarantee provided by the seller to the buyer that promises the quality and condition of the product being sold.

Seller or Lessor

A party that offers goods for sale or leases property to another party in exchange for payment.