Which of the Following Would Be Most Likely to Lower

question 20

Multiple Choice

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

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

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Definitions:

Articles of Incorporation

Official legal documents that establish a corporation's existence, outlining its name, purpose, structure, and other essential details.

Incorporation Statute

A legal document that establishes a corporation's existence under the laws of a specific state or jurisdiction.

Directors

Individuals elected by shareholders to manage the overall affairs of a corporation and set its strategic direction.

Shareholder's Meeting

An annual or special meeting held for the owners of a company's shares, to discuss company affairs, financial performance, and elect the board of directors.