Which of the following statements is true?
A) U.S.Treasury securities with relevant maturities are used as the basic cost of money and lenders add premiums for risk and other factors.
B) Some lenders determine a prospective borrower's risk class and determine the rates charged on loans with similar maturities by firms in the same risk class.
C) All borrowers are charge the same rate regardless of their risk class.
D) Both (a) and (b) are true
E) None of the above statements are true.
Correct Answer:
Verified
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