Which of the following generalizations is false? Other things equal,
A) interest rates are higher if lenders are imperfectly, rather than purely, competitive.
B) the interest rate is less on small loans than on larger loans.
C) long-term loans normally command higher interest rates than short-term loans.
D) the greater the risk on a loan, the greater the interest rate.

Question

Quizplus · Accepted Answer

Other things equal, the interest rate is typically higher on small loans than on larger loans due to higher administrative costs per dollar lent.

Which of the Following Generalizations Is False? Other Things Equal