Final answer:
The ROUND function is not used to determine loan balances; it is for rounding numbers. Loan balances require amortization formulas with different factors. The money multiplier formula pertains to banking systems, not individual loans.
Step-by-step explanation:
The statement that the ROUND function can be used to determine how much the borrower of a loan still owes at the end of each year is false. The ROUND function is used in mathematics and spreadsheet applications like Excel to round numbers to a specified number of decimal places, not to calculate loan balances. To determine how much is owed on a loan, one would typically use loan amortization formulas that account for the principal, interest rate, and number of payment periods. Factors such as payments made, interest rates, and time would be involved in such calculations. While the concept of a money multiplier formula is relevant in economics for banking systems, it is not directly applicable to individual loan repayments.
When evaluating the worthiness of a loan, considerations such as the profitability of a borrower or changes in economic interest rates are important. For instance, a firm with a record of high profits or scenarios where interest rates have fallen can affect the perceived value or repayment capability associated with a loan.