The First or Basic Principle of Finance Dictates That an Individual

question 14

Multiple Choice

The first or basic principle of finance dictates that an individual will invest in a project if:

• A) they are made better off in the financial market.
• B) they are unable to adjust their savings and consumption in the financial market.
• C) if the project is at least as desirable as what is available in the financial markets.
• D) the interest rate for borrowing and lending is not equal.

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Definitions:

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