John Gleason is interested in purchasing a 46" rear projection TV for his living room.He knows that right now the TV will cost approximately $1500.John wants to borrow the money to purchase the TV but is a little concerned because he thinks interest rates are going to fall in the future.He is worried that he might get stuck with a loan at a high interest rate.What type of risk is John worried about?
A)Inflation risk
B)Interest rate risk
C)Income risk
D)Personal risk
E)Liquidity risk

Question

Quizplus · Accepted Answer

John is worried about interest rate risk, which is the risk that the cost of borrowing money will increase in the future. This could leave him with a loan at a high interest rate, making the cost of borrowing more expensive than he anticipated.

John Gleason Is Interested in Purchasing a 46" Rear Projection