Multiple Choice
Financial institutions who have loaned money at a fixed rate of interest will most likely:
A) experience losses if the inflation rate is higher than anticipated.
B) experience losses if the inflation rate is lower than anticipated.
C) earn an increased profit margin between the interest paid on deposits and the interest received on loans.
D) benefit if the inflation rate is higher than anticipated.
Correct Answer:

Verified
Correct Answer:
Verified
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