Interest Rates Differ Because of Differences in

question 108

Multiple Choice

Interest rates differ because of differences in

• A)risk, the term of the loan, and the cost of making the loan.
• B)the term of the loan, but no other factors.
• C)the cost of making the loan, but no other factors.
• D)the term of the loan and the cost of making the loan, but not because of differences in risk.

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Definitions:

Quantity Of Labor

The total hours worked or the number of workers employed by a business or within an economy.

Contracting Services

The process of engaging an external company to provide services that could be performed by in-house staff.

Signaling View

An economic theory that suggests that education serves as a signal to employers about a potential employee's abilities.

Surplus Of Labor

An excess supply of labor in the job market, where the number of workers seeking employment exceeds the number of job vacancies.