Which combination of circumstances will most likely raise the rate of interest for a loan the most?

Question

Quizplus · Accepted Answer

A combination of high risk and a long length of time for repayment will most likely raise the rate of interest for a loan the most. High risk means there is a higher chance of default, which means the lender will want to charge a higher interest rate to compensate for the risk. Additionally, a longer length of time for repayment means the lender will have to wait longer to receive their money, which also increases the risk for the lender and justifies a higher interest rate.

Which Combination of Circumstances Will Most Likely Raise the Rate