The interest rate on a given loan reflects the ________ of the loan and the perceived risk to the ________.
A. size; borrower.
B. length; borrower.
C. size; borrower and lender.
D. length; lender.
Answer: D
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The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. The efficient quantity of chemicals to produce is ________ tons of chemicals a week
A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons
The unemployment rate is an example of a Federal Reserve
A) tool. B) operating target. C) intermediate target. D) ultimate objective.
Compared to the 1960s, during most of the 1990s average annual real GDP growth was ________ while the average ratio of net investment to output was ________
A) slightly lower, much lower B) much lower, slightly higher C) much higher, much lower D) slightly higher, slightly lower
If both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted B) will rise, cannot be predicted C) cannot be predicted, will fall D) cannot be predicted, will rise