Maria Ivanov has owned a successful clothing boutique

Question

chain for 20 years. She has gone into debt several times to
expand her business. Each time, she paid off the debt in
full sooner than expected.
Use the scenario to answer the question.
How will Maria's record affect the loans she is
offered?
(1 point)
O She will be offered longer terms.
O She will be offered shorter terms.
O She will be offered lower interest rates.
O She will be offered higher interest rates.

Answer 1

Maria's record of successfully paying off her debts sooner than expected suggests that she is a reliable borrower. As a result, lenders are likely to view her positively.

The most likely effect this would have on the loans she is offered is:

O She will be offered lower interest rates.

This is because a strong repayment history typically indicates a lower risk to lenders, which often translates into better loan terms, including lower interest rates.