When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.
A) cultural and social
B) economic
C) legal
D) political
E) competitive

Question

Quizplus · Accepted Answer

Interest rates are directly related to the economic environment, as they are impacted by factors such as inflation, monetary policy, and market demand for credit.

When a Local Bank in Kansas City Makes Loans to Its