Q. Interest on a corporate loan compensates the lender for:
A. risk only.
B. opportunity cost only.
C. both risk and opportunity cost.
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Ответ:
C. both risk and opportunity cost.
Explanation:
Lenders have different interest rates for different clients and loan types. How they arrive at the different interest rates depends on the lender's internal factors. Generally, a lender considers the following in determining interest rates
The cost of funds being loaned out, whether customer deposits or from the markets.The risk of a customer defaultingThe lender's profit marginThe cost of administering the loanThe lender's profit margin represents the opportunity cost element. A lender has to consider how many profits other investing options would generate aside from issuing out the loan.
Ответ: