Which of the Following Would Be LEAST Likely to Lower

question 38

Multiple Choice

Which of the following would be LEAST likely to lower the interest rate that a bank offers a borrower?

• A)The number of borrowers seeking funds is low.
• B)The expected inflation rate is expected to be low.
• C)The borrower is judged to have a low degree of risk.
• D)The investment will be for a long period of time.

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Definitions:

Discarded

Discarded refers to items or substances that have been thrown away or disposed of, no longer deemed useful or necessary.

Equipment Cost

The total amount spent to acquire, install, and make ready for use a piece of equipment for operational purposes.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.

Expense Account

An accounting category used for tracking money spent on operating activities of a business.