Which of the following factors directly impact the level of interest rates?
A)risk
B)marketability
C)maturity
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the above factors directly impact the level of interest rates. Risk represents the likelihood that the borrower will default on the loan, which affects the interest rate. Marketability refers to the ease with which the loan can be bought and sold, affecting the interest rate. Maturity is the length of time until the loan is due, which affects the interest rate. Therefore, all the factors (risk, marketability, and maturity) impact the level of interest rates.

Which of the Following Factors Directly Impact the Level of Interest