Question

Maria Ivanov has owned a successful clothing boutique 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. Question Use the scenario to answer the question. How will Maria’s record affect the loans she is offered? (1 point) Responses She will be offered longer terms. She will be offered longer terms. She will be offered shorter terms. She will be offered shorter terms. She will be offered lower interest rates. She will be offered lower interest rates. She will be offered higher interest rates.

Answer 1

She will be offered lower interest rates. Maria’s history of reliably repaying debt reduces her credit risk, so lenders are likely to offer more favorable (lower-rate) loans.