Which of the following would be LEAST likely to lower the interest rate that a bank offers a borrower?
A) The number of borrowers seeking funds is low.
B) The expected inflation rate is expected to be low.
C) The borrower is judged to have a low degree of risk.
D) The loan will be for a long period of time.

Question

Quizplus · Accepted Answer

A long-term loan typically carries a higher interest rate than a short-term loan, as there is a greater risk of uncertainty and inflation over a longer period of time. The other options (A, B, and C) would all be factors that could potentially lower the interest rate offered by a bank to a borrower.

Which of the Following Would Be LEAST Likely to Lower