Which Has the Greatest Effect Upon the Interest Rate an Individual

question 77

Multiple Choice

Which has the greatest effect upon the interest rate an individual must pay for a real estate mortgage loan?

• A) Federal governmental borrowing
• B) State governmental borrowing
• C) Local governmental borrowing
• D) Competition form commercial and industrial borrowers

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Definitions:

Exchange Controls

Regulatory measures imposed by a government on the buying/selling of foreign currencies or on the movement of currencies out of a country.

Exchange Control

Restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency.

Domestic Capital

Financial assets and resources available within a country, including savings and investments, that are used for economic growth.

Foreign Corrupt Practices Act

A U.S. law that prohibits companies from bribing foreign officials to obtain or retain business.