The effective cost of credit depends upon
1) the amount of time the borrower has the use of the funds
2) the stated rate of interest
3) the proceeds the borrower may use
A)1 and 2
B)1 and 3
C)2 and 3
D)1, 2, and 3

Question

The effective cost of credit depends upon
1) the amount of time the borrower has the use of the funds
2) the stated rate of interest
3) the proceeds the borrower may use​
A)1 and 2​
B)​1 and 3
C)​2 and 3
D)​1, 2, and 3

Quizplus · Accepted Answer

The effective cost of credit is influenced by the duration for which the borrower has access to the funds, the stated interest rate, and the actual amount of proceeds the borrower can use. These factors collectively determine the true cost of borrowing.

The Effective Cost of Credit Depends Upon