Which One of the Following Statements Is NOT True

question 22

Multiple Choice

Which one of the following statements is NOT true?

• A) The correct way to annualize an interest rate is to compute the effective annual interest rate (EAR).
• B) The APR is the annualized interest rate using simple interest.
• C) The correct way to annualize an interest rate is to compute the annual percentage rate (APR).
• D) You can find the interest rate per period by dividing the quoted annual rate by the number of compounding periods.

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Definitions:

MBTI

Myers-Briggs Type Indicator, a personality inventory based on Jungian psychological types, used to understand individual differences.

TAT

A projective psychological test (Thematic Apperception Test) that asks respondents to tell stories about ambiguous pictures.

CPI

Consumer Price Index, a measure assessing the average change over time in the prices paid by consumers for a basket of goods and services.

Projective Tests

Types of personality tests in which individuals are presented with ambiguous stimuli and their responses are interpreted to uncover underlying thoughts, feelings, and traits.