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Question Practice

Why do borrowers pay higher interest rates on loans?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA

Exploring Society India and Be...

Banks and the Magic of Finance

Why do borrowers pay higher in...

Single Answer MCQ

Q-00131285

Why do borrowers pay higher interest rates on loans?

1

To punish them

2

To compensate banks for risk and costs

3

Because banks enjoy charging fees

4

To eliminate their saving options

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