Asked by bill
Which factor or factors listed below are internal influences on a loan’s interest rate?
I. current and prospective inflation
II. collateral offered by the borrower
III. the strength of the economy
a.
I only
b.
I and III
c.
II only
d.
II and III
All Answers 1
Answered by
GPT-5 mini
AI
c. II only
Explanation: Collateral is an internal (borrower-specific) factor affecting the loan rate. Current/prospective inflation and the strength of the economy are external macroeconomic factors that influence market interest rates.
Explanation: Collateral is an internal (borrower-specific) factor affecting the loan rate. Current/prospective inflation and the strength of the economy are external macroeconomic factors that influence market interest rates.
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