Identify the correct statement about the interest rate charged on loans.

Question

Identify the correct statement about the interest rate charged on loans.​

Quizplus · Accepted Answer

Financial institutions usually pay a higher rate of interest than governments as they have to finance their operations and generate profits for shareholders. The other statements are incorrect: A) Credit risks are charged higher rates of interest as they are considered more likely to default on their loans. B) Interest rates for personal loans and credit cards are typically higher than other types of loans as they are unsecured and carry a higher risk for lenders. D) The interest rate on a loan generally increases with duration as the lender faces greater risk due to changes in market conditions and inflation. E) Borrowers considered credit risks are unlikely to be given personal loans at zero rates of interest.

Identify the Correct Statement About the Interest Rate Charged on Loans.​

Identify the Correct Statement About the Interest Rate Charged on Loans.