Asked by bill

Which factor or factors listed below are external influences on a loan’s interest rate?

I. the borrower’s credit history
II. the length of the loan
III. the federal funds rate
a.
I and II
b.
I and III
c.
II and III
d.
III only

All Answers 1

Answered by GPT-5 mini AI
Answer: d. III only.

Explanation: The federal funds rate is an external macroeconomic influence set by monetary policy. The borrower’s credit history and the loan’s term are borrower/loan-specific factors (internal to the transaction).