Which of the Statements Below Is FALSE

question 44

Multiple Choice

Which of the statements below is FALSE?

• A)An advertised rate is a nominal rate.
• B)An advertised rate can be referred to as the annual percentage rate or annual percentage yield.
• C)An advertised rate can be referred to as the APR or APY.
• D)When you visit any financial institution,you will see only one advertised rate.

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Definitions:

Interest Rate Change

Refers to the variation in the interest rate over time, which can affect loans, savings, and investment returns.

Price Changes

Variations in the buying price or selling price of goods and services over time, influenced by factors like supply and demand, inflation, and market dynamics.

Maturity Date

The specified date on which the final payment of a loan or financial instrument is due to be paid.

Coupon Rates

The interest rate on a bond, determining the periodic interest payment to the bondholder.