The interest rate on business loans in developing countries is typically _____ than those in developed countries, reflecting a _____ demand for loans relative to supply.
A) lower; low
B) lower; high
C) higher; low
D) higher; high

Question

Quizplus · Accepted Answer

Interest rates on business loans in developing countries are typically higher due to a high demand for loans relative to the available supply. High demand and limited supply of credit increase the cost of borrowing.

The Interest Rate on Business Loans in Developing Countries Is