Which of the Following Factors May Affect the Promised Return

question 9

Multiple Choice

Which of the following factors may affect the promised return an FI receives on a loan?

• A)The collateral backing of the loan.
• B)Fees relating to the loan.
• C)The interest rate on the loan.
• D)The credit risk premium on the loan.
• E)All of the options.

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Definitions:

Differentia

The trait or set of traits that distinguish one species from another within a genus or one entity or concept from another within a classification.

Type

A category or class of things that share common characteristics or attributes.

Referents

Objects or concepts in the world to which words, phrases, or symbols refer or denote in language and thought.

Differentia

The characteristic or set of characteristics that distinguishes one species or entity from another, especially in taxonomy or logic.