Banks and other financial institutions offer short-term loans not secured by collateral at interest rates that vary based on which of the following?

Question

Quizplus · Accepted Answer

The interest rates offered on short-term loans not secured by collateral vary based on the business's credit rating. This is because a higher credit rating indicates a lower risk of default, and thus lower interest rates. The other options, such as the type of business, owner's personal wealth, and state of the economy, may also be considered by lenders but are not the primary factors in determining interest rates for short-term loans.

Banks and Other Financial Institutions Offer Short-Term Loans Not Secured