Which One of the Following Statements Is NOT True

question 96

Multiple Choice

Which one of the following statements is NOT true?

• A) The Truth-in-Lending Act was passed by Congress to ensure that the true cost of credit was disclosed to consumers.
• B) The Truth-in-Savings Act was passed to provide consumers an accurate estimate of the return they would earn on an investment.
• C) The above two pieces of legislation require by law that the APR be disclosed on all consumer loans and savings plans.
• D) All of the above are true statements.

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Definitions:

Capital Budgeting

The process of planning and evaluating investments in long-term assets.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the investment cost through net cash flows.

Cost of Capital

The minimum profit rate a company needs to achieve on its investment ventures to keep its market value stable and draw in capital.

Cash Inflows

Money received by a business from various sources including sales, investments, and financing.