The interest rate charged on a car loan is usually higher than the interest rate charged on a home loan because _____
A) the market price of a car is less than the market price of a home.
B) a car is a worse collateral than a home.
C) the rate of default on car loans is lower than the rate of default on home loans.
D) people with poor credit ratings take car loans.
E) people with poor credit ratings are willing to pay higher rates of interest.
Correct Answer:
Verified
Q70: What is the relationship between the duration
Q71: Other things constant,the interest rate usually _
A)increases
Q72: Administration costs,as a proportion of the loan,_
A)increase
Q73: The costs of executing the loan agreement,monitoring
Q74: If risk,administrative costs,and tax treatments are the
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