Use the Following Figure to Answer the Question

question 13

Multiple Choice

Use the following figure to answer the question:
-If the Earth had two identical moons in one circular orbit,and the moons were as far apart in that orbit as they could be,the center of gravity of the Earth-moons system would be

• A)at the center of the Earth.
• B)inside the Earth,but off center.
• C)outside the Earth,but within the orbital path of the moons.
• D)outside the Earth,but beyond the orbital path of the moons.

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Definitions:

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender as a condition for a loan, intended to compensate the bank for providing the loan or credit line.

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the compounding of interest over time, as opposed to the nominal interest rate.

Short-Term Bank Loan

A loan obtained from a bank that has a short repayment period, typically less than one year.

Best Course of Action

The most suitable or advantageous strategy or decision to take in a given situation.