Which of the Following Would Be LEAST Likely to Lower

question 42

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 loan will be for a long period of time.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; commonly abbreviated as GAAP.

Good Faith

A sincere intention to be fair, open, and honest, regardless of the outcome of the interaction.

Incorrect Judgment

A decision or conclusion that is wrong due to error in reasoning, understanding, or perception.