Which of the following statement is incorrect? O Promissory note is a legal document the borrower signs indicating agreement to the terms of a loan. Most of the answers are correct. O In the case of a discount loan, the effective rate of interest the borrower is paying is increased. 4 O The cost of a loan is normally measured by multiplying the amount paid to obtain the loan by the amount the borrower gets to use during the life of the loan. O Compensating balances on loans are getting less common although they are still used