One of the reasons that interest rates vary for different type of loans is:
A) the length of time to repay the loan.
B) the amount of the loan.
C) government policy.
D) the exchange rate.

Question

Quizplus · Accepted Answer

The length of time to repay the loan is a factor in determining interest rates because a longer repayment period increases the risk for the lender, therefore they charge a higher interest rate to compensate for the added risk.

One of the Reasons That Interest Rates Vary for Different