Which of the Following Suggests That Higher Interest Rates Are

question 114

Multiple Choice

Which of the following suggests that higher interest rates are charged to high risk borrowers?

• A)Risk/return tradeoff
• B)Compensating balance concept
• C)Cost-benefit analysis
• D)Direct relationship principle

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Definitions:

Innovation

The act of introducing something new, such as an idea, method, or device, which is aimed to improve processes, products, or services.

Corporate Venturing

The practice of a large company funding new, innovative projects or startups to explore new markets or technologies.

Venture Creation

The process of conceiving, developing, and bringing a new business or enterprise into existence.

Acquisition Strategies

Plans developed by businesses to successfully buy out or merge with other companies.