Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.
B) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
C) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
D) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.