Each of the Following Is a Reason Why Lenders Might

Multiple Choice

Each of the following is a reason why lenders might add a risk premium to the interest rate they charge for a loan except

A) lenders need to be compensated if the loan is being sought to finance a risky project.
B) the borrower has a history of not repaying loans.
C) the investment project for which the borrower is seeking a loan may not prove to be profitable.
D) lenders always charge high interest rates.