Differences in interest rates are due to:
A)the length of time the borrower has to repay the loan.
B)the amount of the loan.
C)government policy.
D)All of these are true.

Question

Quizplus · Accepted Answer

Differences in interest rates are primarily due to the length of time the borrower has to repay the loan. The longer the repayment period, the higher the interest rate will be. The amount of the loan and government policy can also affect interest rates, but they are secondary factors compared to the repayment period.

Differences in Interest Rates Are Due To