For One Person to Be Willing to Lend Money to Another

Multiple Choice

For one person to be willing to lend money to another person,the interest rate must be high enough to compensate the lender for

A) the risk of deflation and bearing the risk of default.
B) the time value of money and bearing the risk of default.
C) the opportunity cost of risk and the principal.
D) the certainty of default and the certainty of inflation.