The interest rate on a given loan reflects the ________ of the loan and the perceived risk to the ________.
A) size; borrower
B) size; borrower and lender
C) length; borrower
D) length; lender

Question

Quizplus · Accepted Answer

The interest rate on a loan reflects the length of the loan and the perceived risk to the lender, as longer loans typically have higher interest rates due to increased risk over time, and higher risk to the lender often results in higher rates to compensate for that risk.

The Interest Rate on a Given Loan Reflects the ________