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Single Answer MCQ
Q-00045420

Which one of the following factors can affect the interest rate on a loan?

1

The borrower's credit history

2

The geographic location of the bank

3

The bank's total assets

4

The number of employees in the bank

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Sandeep Chaturvedi

Sandeep Chaturvedi

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Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

A. The borrower's credit history

Solution:

The borrower's credit history is a significant factor that lenders use to determine the risk associated with a loan, influencing the interest rate offered to the borrower.

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