Which of the following is NOT a consideration when a bank decides the appropriate interest rate to charge on a loan?

Question

Quizplus · Accepted Answer

The ratio of the bank's assets to its liabilities (also known as the bank's leverage ratio) is not typically a direct consideration when deciding the appropriate interest rate to charge on a loan. Instead, banks will consider factors such as their cost of funds, the default risk associated with the loan, and the rates of return on alternative investments.

Which of the Following Is NOT a Consideration When a Bank