Asked by
Moses Motsamai
on Nov 26, 2024Verified
Other things equal, interest rates are
A) higher on large loans than on small loans.
B) higher on loans with tax-exempt interest payments.
C) lower on less risky loans than on riskier loans.
D) lower on short-term loans than on long-term loans.
Riskier Loans
Loans that carry a higher chance of default compared to standard loans, often resulting in higher interest rates to compensate for the increased risk.
Tax-Exempt
A status of financial or material exemption from the requirement to pay taxes granted by government authorities.
- Acquire knowledge about the impact of interest rates on the stability of financial markets.
Verified Answer
EE
Learning Objectives
- Acquire knowledge about the impact of interest rates on the stability of financial markets.