Which of the Following Actions Will Reduce the Interest Rate

question 36

Multiple Choice

Which of the following actions will reduce the interest rate risk of the lender?

• A) Make fixed interest rate loans.
• B) Make fixed interest rate, long-term loans.
• C) Make variable interest rate loans.
• D) Invest in fixed rate Treasury bonds.

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Definitions:

Scientific Evidence

Information and data that serve to either support or counter scientific hypotheses or theories, derived from scientific methods.

Systematic Procedures

Involves a methodical approach to tasks or operations that follow a specific, organized sequence of steps or protocols.

Mesosystem

A concept in Bronfenbrenner's ecological systems theory referring to the interconnections between different microsystems in an individual's life.

Bronfenbrenner's Bioecological

A theory that emphasizes the importance of understanding how the environment and biological systems mutually affect each other and development over time.