The marginal cost-of-funds curve for a firm shows the
A) interest rate that a firm must pay for additional funding.
B) rate of return that a firm gets from its investment projects.
C) amount of funds available to a firm for its investments.
D) sources of funds that a firm has for its various projects.

Question

Quizplus · Accepted Answer

The marginal cost-of-funds curve shows the interest rate that a firm must pay for additional funding. It represents the relationship between the amount of funds that a firm wishes to raise and the interest rate it must pay to attract those funds.

The Marginal Cost-Of-Funds Curve for a Firm Shows the