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.