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The Business Loan Pricing Method Which Starts with a Base

Question 108

Multiple Choice

The business loan pricing method which starts with a base rate such as a bank's prime rate and adds a markup for default and term risk is known as:


A) the cost-plus loan pricing method.
B) the price leadership model.
C) the below-prime rate pricing model.
D) customer profitability analysis.
E) None of the options is correct.

Correct Answer:

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