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:

Plutchik

Robert Plutchik was a psychologist who proposed the "wheel of emotions," which illustrates the relationships among emotions.

Cannon-Bard

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, yet independently.

Self-Actualization

The act of reaching one's full potential and making use of their talents, perceived as a universal desire or requirement.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.