Other Things Equal, the Interest Rate on a Loan Will

question 103

Multiple Choice

Other things equal, the interest rate on a loan will be smaller,

• A) the greater the risk involved.
• B) the smaller the amount of the loan.
• C) the longer the length of the loan.
• D) if the loan interest is exempt from taxation.

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Definitions:

Neural Messages

Electrical and chemical signals that are transmitted by neurons to send information throughout the nervous system.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Light Rays

Streams of photons that move in a straight line and are responsible for allowing the human eye to see and perceive the world around.

Encoding

The initial process of transforming information into a form that can be stored in memory.