Which of the following statements is true?

Question

Quizplus · Accepted Answer

U.S Treasury securities with relevant maturities are often used as the basic cost of money, with lenders adding premiums for risk and other factors in determining the interest rates charged. Additionally, some lenders may determine a borrower's risk class and set rates based on that classification. Therefore, both statements (a) and (b) are true. Option (c) is not accurate as it assumes all borrowers are charged the same rate regardless of their risk level, which is not always the case.

Which of the Following Statements Is True