Which of the Following Is True

question 60

Multiple Choice

Which of the following is true?

• A)You should use all your liquid assets to pay off loans when the return on the investments is high.
• B)Paying off loans is appropriate when the loan interest rate is high and you have enough liquidity.
• C)Paying off loans is wise whenever the loan rate is lower than what you expect to earn on investments.
• D)Loan payments will not restrict your cash flow but may prevent you from achieving financial goals.

---

Definitions:

False Alarm

An event in which a warning or alert is given, but the anticipated threat or danger does not actually occur.

Signal Detection Task

A psychological test that measures the ability to differentiate between information-bearing patterns (signals) and random patterns that distract from the information (noise).

Hit

In the context of data or searches, a hit refers to a successful match or retrieval of information that corresponds to a specific query.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference (JND).