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Which of the Following Would Be Most Likely to Lower

Question 20

Multiple Choice

Which of the following would be most likely to lower the interest rate that a bank offers a borrower?


A) The number of borrowers seeking funds is high.
B) The expected inflation rate is expected to be high.
C) The borrower is judged to have a low degree of risk.
D) The investment will be for a long period of time.
E) The number of savers depositing funds at the bank is low.

Correct Answer:

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