Which of the following is true of lending by banks?
A) Banks always charge a lower rate of interest on a car loan than on a home loan.
B) Banks increase their prime rate of lending to protect their loans.
C) Banks require borrowers to put up collateral to reduce the risk of lending.
D) Banks discount the present value of loans to reduce the risk of lending.
E) Banks charge lower rates of interest to people with poor credit ratings.
Correct Answer:
Verified
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