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.

---

Definitions:

Gross Margin Percentage

A financial metric that measures the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage; it shows the proportion of money available to cover other expenses and profit.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets, indicating how effectively a company is using its assets to generate earnings.

Long-Term Debt

Borrowings and financial obligations that are due for repayment in a period exceeding one year.

Return On Equity

A financial ratio that measures the profitability of a business in the relation to the equity, indicating how effectively shareholder equity is being utilized.