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:

Zuckerman's Research

Refers to the body of work by psychologist Marvin Zuckerman, focusing on sensation seeking, personality traits, and their biological bases.

Sensation Seeking Scale

A psychological assessment tool designed to measure an individual's propensity for seeking novel, varied, complex, and intense sensations and experiences.

Personality Factors

Fundamental traits or dimensions of personality identified through factor analysis that underlie human behavior and personality.

Autonomy

The state or condition of having the freedom and independence to make one's own choices and decisions.