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

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Definitions:

Systematic Random Sample

A sampling method where elements are selected from an ordered population using a fixed, periodic interval.

Random Selection

Random selection is a process in statistical sampling where each member of the population has an equal chance of being chosen, ensuring the sample is representative of the whole.

Sample

A sample is a subset of a larger population, selected for the purpose of analysis, which is used to infer or predict characteristics or outcomes for the whole population.

Statistic

A single measure, often derived from a sample, used to summarize or describe an aspect of the data.