The _______ the length of a loan, and the _______ the risk of repayment, the higher the interest rate a bank will charge.
A) longer; higher
B) longer; lower
C) shorter; higher
D) shorter; lower

Question

Quizplus · Accepted Answer

The longer the length of a loan, the more time the borrower has to default on the loan, which increases the risk for the bank. Similarly, a higher risk of repayment also increases the risk for the bank. Therefore, both factors lead to a higher interest rate for the borrower.

The _______ the Length of a Loan, and the _______

The _ the Length of a Loan, and the _