The Administration Costs of a Loan as a Proportion of the Total

question 103

Multiple Choice

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

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Definitions:

Schizophrenia

A severe mental disorder characterized by disturbances in thought processes, perceptions, emotional responsiveness, and social interactions.

Post-Traumatic Stress Disorder

A psychiatric disorder that occurs after seeing or going through a frightening ordeal, marked by persistent flashbacks, traumatic nightmares, and high levels of anxiety.

Acute Stress Disorder

Acute Stress Disorder is a mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within a month after exposure to a traumatic event.

Anxiety

A feeling of worry, nervousness, or unease, often about an impending event or something with an uncertain outcome.