Question

bould wouk indiviualy Working wish es o sharing your wwes with the cratement is true and ) Buying on eredit is almost always cheaper than p 2) Parents or family members are often the source of the least expensive losns 3) The first step to creating an investment plan is to establih investment gonls. )T 4) Investors less than 35 years old are less likely to invest in mutual funds than any other age group the statement is false 5) High-yield bond funds are sometimes referred to as junk-bond funds 6) One of the misconceptions about retirement is that your expenses will drop when you retire. 7) All earnings in a tax-sheltered annuity grow without current federal taxation. npan MULTIPLE CHOICE. Choose the one alternative that best completes the statem question. 9) By evaluating your credit options, you may: A) discover a less expensive type of loan. B) reduce your finance charges. C) reconsider your decision to borrow money D) find a lender that charges a lower rate. E) All of these 10) The most expensive loans are available from A) federal savings banks. B) credit unions. C) friends. D) finance companies. E) parents. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 11) Because an index mutu al fund is a mirror image of a specific index, the dollar value of a share in an index MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 12) If Marjorie Wilcox borrows $200 for one year with an APR of 12% and an annual service fee of $10, what is her total cost of credit? 12)_3 fund increases when the index increases

Answer 1

Purchasing product or service in cash is cheaper when compared with buying on credit. When the cash is paid for purchasing goods and services then the seller ascertain the cost associated with the goods or services and a reasonable amount of profit. Thus the seller will pay the money to the wholesaler or retailer from whom the goods have been purchased after keeping aside his profit and the books of account will be settled down. However when the goods are purchased on credit then the seller will charge either interest on the cost of his investment or will sell the good at more than the normal price to ascertain the interest on his cost of investment along with the profit due to which the product or service become expensive when purchased on credit

Thus it can be concluded that the statement is “False”