Asked by eman

hich 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


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
C — II only.

Explanation: Collateral offered by the borrower is an internal (loan/borrower-specific) factor affecting the interest rate. Current/prospective inflation and the strength of the economy are external, macroeconomic influences.