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explain 3- Interest Rate Risk: One of the Greatest Management Challenges Forces Determining Interest Rates o Loanable Funds Theory The rate of interest on any

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3- Interest Rate Risk: One of the Greatest Management Challenges Forces Determining Interest Rates o Loanable Funds Theory The rate of interest on any particular loan or security is ultimately determined by the market place where suppliers of loanable funds (credit) interact with demanders of loanable funds (credit) The interest rate (price of credit) tends to settle at a point where the quantities of loanable funds demanded and supplied are equal 10

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