Interest rates charged on loans vary depending on the risk of borrower,and the size of the loan,but not the economic conditions.

Question

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Interest rates charged on loans can be influenced by economic conditions such as inflation, monetary policy, and market demand. In times of economic slowdown or recession, interest rates on loans may be lowered to encourage borrowing and stimulate economic growth. Additionally, the risk of borrower and the size of the loan are not the only factors considered when determining the interest rate. Other factors may include credit score, income level, and loan purpose.

Interest Rates Charged on Loans Vary Depending on the Risk