a
the prevailing exchange rate
b
marginal efficiency of capital
c
the risk associated with the loan
d
the prevailing tax rate
Explanation
Correct Option
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NOTABENE2021
4 years ago
The rate of interest charged for any particular transaction will depend on such considerations as the purpose and duration of the loan, the amount of money borrowed, the COLLATERAL SECURITY offered (if any) and the creditworthiness of the borrower, all factors influencing the degree of perceived ‘risk’ involved in making the loan as seen by the lender.
