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

Interest rates are typically higher on small loans than on larger loans due to the higher administrative costs per dollar lent and potentially higher risk associated with smaller loans.

Which of the Following Generalizations Is False? Other Things Equal