Which of the Following Costs Serves to Compensate the Lender

question 37

Multiple Choice

Which of the following costs serves to compensate the lender for loss of liquidity?

• A)administrative costs of making the loan
• B)cost of paying for the risk involved
• C)cost to offset the likelihood of inflation
• D)cost for use of money during the period of the loan

---

Definitions:

Employer Rights

Legal entitlements and powers that allow business owners and managers to conduct business, manage their employees, and make decisions regarding workplace operations.

Union Contract

A written agreement between a labor union and an employer that outlines the terms of employment, including wages, hours, working conditions, and grievance procedures.

Legally Binding

A contract or agreement that is enforceable by law, where parties are obligated to fulfill their contractual duties.

Terms of Employment

The conditions and agreements under which employees are hired, including duties, hours, salary, and benefits.