If lenders think that a particular borrower might default,they will demand:
A) a higher interest rate to make it worth taking that risk.
B) a lower interest rate to make it worth taking that risk.
C) a higher interest rate to decrease the amount of risk incurred.
D) a lower interest rate to decrease the amount of risk incurred.
Correct Answer:
Verified
Q61: A bank will charge a higher interest
Q64: Differences in interest rates are due to:
A)the
Q65: A default happens when:
A)a borrower fails to
Q68: Evidence from the Great Depression suggests that
Q69: The risk-free rate is usually approximated by
Q69: The reduction in private borrowing that is
Q70: The risk-free rate is:
A)the interest rate at
Q72: When a borrower fails to pay back
Q80: Lenders generally want a higher interest rate
Q97: The difference between the risk-free rate and
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