All of the Following Affect Interest Rates Charged on Term

question 61

Multiple Choice

All of the following affect interest rates charged on term loans except:

• A) default risk.
• B) the maturity.
• C) the repayment schedule.
• D) refinancing risk.

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Definitions:

African Nation

An independent, sovereign country located on the African continent.

World Trade Organization

An international organization designed to facilitate and regulate international trade by providing a forum for negotiations and dispute resolution.

Developing Nation

A term used to describe a country with a relatively low level of industrial and economic development.

Economies of Scale

Cost advantages that entities obtain due to their scale of operation, leading to a reduction in per-unit cost as production increases.