Which of the Following Generalizations Is False? Other Things Equal

question 51

Multiple Choice

Which of the following generalizations is false? Other things equal,

• A) interest rates are higher if lenders are imperfectly, rather than purely, competitive.
• B) the interest rate is less on small loans than on larger loans.
• C) long-term loans normally command higher interest rates than short-term loans.
• D) the greater the risk on a loan, the greater the interest rate.