Which of the Following Statements Is True of Good Information

question 5

Multiple Choice

Which of the following statements is true of good information?

• A)Good information should go well beyond the scope of the purpose for which it is generated.
• B)Information should be relevant to the subject, not necessarily to the context.
• C)Good information should be based on correct and complete data.
• D)Good information is only received from sources that provide data for free.

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing, including means such as loans, equity investments, and other financial instruments.

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.

Checking Account

A bank account that allows depositors to write checks against deposited funds, making it easy to access and manage money for daily transactions.

Loan Cost

The total expense that a borrower incurs to take out a loan, including interest rates, fees, and any other charges.