Other things equal, interest rates are
A) higher on large loans than on small loans.
B) higher on loans with tax-exempt interest payments.
C) lower on less risky loans than on riskier loans.
D) lower on short-term loans than on long-term loans.

Question

Quizplus · Accepted Answer

Interest rates are typically lower on less risky loans because lenders require less compensation for taking on lower risk.

Other Things Equal, Interest Rates Are