In general, the greater the risk that the lender takes on to provide the loan, the greater the interest rate charge will be.

Name: In general, the greater the risk that the lender takes on to provide the loan, the greater the interest rate charge will be.
Brand: Quizplus
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Quizplus · Accepted Answer

This is because lenders need to be compensated for taking on higher levels of risk. Higher interest rates help offset potential losses from defaults or other forms of non-payment.

In General, the Greater the Risk That the Lender Takes