Which of the Following Is Most Accurate About Interest Rates

question 63

Multiple Choice

Which of the following is most accurate about interest rates in Canada?

• A)Charging a rate of three percent for a seven day payday loan is legal in Canada.
• B)As long as loan charges come in the form of fees,they are not included in interest rate calculations in Canada.
• C)Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada.
• D)The maximum interest rate that can be legally charged on a consumer loan in Canada is 60 percent.

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Definitions:

Guaranteed Payment

A payment type in partnerships where a partner is assured a certain amount regardless of the firm's profitability.

Accounting Process

The systematic series of steps followed in the accounting profession to track and record financial transactions and prepare financial statements.

Systematic Recording

The organized and consistent documentation of data or observations according to a defined procedure or method.

Traveler's Checks

A form of preprinted, fixed-amount cheques used by travelers to safely carry money; they can be exchanged for local currency.