Two Important Determinants of the Rate of Interest Charged to Borrowers

question 10

Multiple Choice

Two important determinants of the rate of interest charged to borrowers are the riskiness of the loan and the

• A) capital budget.
• B) liquidity index.
• C) cost of bookkeeping and collection.
• D) level of roundaboutness.
• E) profit share.

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Definitions:

Snowball Sampling

A recruitment technique in research where existing study subjects recruit future subjects from among their acquaintances, creating a "snowball" effect.

Availability Sampling

A non-probability sampling technique where samples are selected based on their availability or ease of access.

Probability Sampling

A sampling method in which every member of the population has a known, non-zero chance of being selected.