Liquid assets earn a higher interest rate than do riskier loans to consumers.

Name: Liquid assets earn a higher interest rate than do riskier loans to consumers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Liquid assets, such as cash or savings accounts, typically earn a lower interest rate because they are considered safer and more accessible, whereas riskier loans to consumers, like personal loans or credit card loans, usually charge higher interest rates to compensate for the higher risk of default.

Liquid Assets Earn a Higher Interest Rate Than Do Riskier