The Interest Rate on Soft Loans Is Traditionally Set at ________

question 89

Multiple Choice

The interest rate on soft loans is traditionally set at ________.

• A) 0 percent
• B) 1 percent
• C) 5 percent
• D) 10 percent

---

Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option while deciding.

Monthly Cash Flows

The total amount of money being transferred into and out of a business, particularly during a month.

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.