Which of the following characteristics is NOT likely to increase the interest on a loan?

Question

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A short-term loan is not likely to increase interest on a loan as it is generally considered less risky and has a shorter period for interest to accrue. A high-risk proposal (A) and a non-creditworthy borrower (B) are factors that would likely increase interest rates. A larger dollar loan (D) may also increase interest rates as there is more money at stake for the lender.

Which of the Following Characteristics Is NOT Likely to Increase