Which Combination of Circumstances Will Most Likely Raise the Rate

question 195

Multiple Choice

Which combination of circumstances will most likely raise the rate of interest for a loan the most?

• A) Low handling charges and low risk
• B) Low handling charges and a long length of time for repayment
• C) High risk and low handling charges
• D) High risk and a long length of time for repayment

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Definitions:

Compensation of Employees

Payments and benefits received by employees in exchange for their labor, including wages, salaries, and benefits such as health insurance.

Total Income

The sum of all earnings or revenues received by an individual or organization before any deductions or taxes.

Compensation of Employees

All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Human Capital

The collective skills, knowledge, and experience of an individual or workforce, viewed as an asset.