Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consumer loans are charged very high interest rates because Group of answer choices Consumer loans are among the most costly and most risky to make

Consumer loans are charged very high interest rates because

Group of answer choices

Consumer loans are among the most costly and most risky to make per dollar of loanable funds committed to them

Household borrowings appear to be interest rate elastic, meaning if banks charge a higher rate, consumers will borrow more.

Consumer loans are relatively safe because consumers pay their loans on time to avoid late payment fees.

Consumers save more when interest rates increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen Cecchetti, Kermit Schoenholtz

6th Edition

1260226786, 9781260226782

More Books

Students also viewed these Finance questions

Question

5. Describe the main retirement benefits.pg 87

Answered: 1 week ago

Question

5. Explain how ERISA protects employees pension rights.pg 87

Answered: 1 week ago