The administration costs of a loan as a proportion of the total cost of the loan typically
a. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
b. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
c. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
d. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
e. increase as the size of the loan increases, but this has no impact on the interest rates charged for large loans compared to small loans
A
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If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
If consumption is defined as C = 2,000 + 0.8Y, then the marginal propensity to save is 0.8
Indicate whether the statement is true or false
The law of demand tells us that people will buy more of a good if
A) the price of that good decreases. B) the prices of other goods decrease. C) people's income increases. D) every factor that can affect people's buying decisions changes.
Price floors and price ceilings
A) always reduce total surplus. B) reduce consumer surplus and increase producer surplus. C) reduce producer surplus and increase consumer surplus. D) Not enough information to determine.