The difference in interest rates between savings accounts and loans can be explained, in part, by the:
A)cost of gathering information on potential borrowers.
B)risk associated with making loans.
C)cost of monitoring borrowers once the loan has been made.
D)All of the Answer s are correct.

Question

Quizplus · Accepted Answer

The difference in interest rates between savings accounts and loans can be attributed to different factors such as the cost of gathering information on potential borrowers, the risk associated with making loans, and the cost of monitoring borrowers once the loan has been made. Therefore, all of the answer choices are correct.

The Difference in Interest Rates Between Savings Accounts and Loans