Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)The equivalent after-tax interest rate is r - (τ × r).
• B)Interest rates vary based on the identity of the borrower.
• C)The ability to deduct the interest expense increases the effective after-tax interest rate paid on the loan.
• D)For loans to borrowers other than the U.S.Treasury,the stated interest rate is the maximum amount that investors will receive.

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Definitions:

Direct Order

A command or instruction given with clear and definitive terms, leaving no room for ambiguity or choice.

Introductory Material

Preliminary content that provides background information or an overview of a topic before the main content.

Direct Order

A clear, unambiguous command or instruction to perform an action, often used in military, workplace, or authoritative contexts.

Indirect Order

A communication method where the main point or essential information is placed later in the message, often used in sensitive situations to prepare the reader before receiving bad news or complex information.