Liberal Bank offers loans at various interest rates, depending on the nature of the loan.

Beth and Carl both want to borrow $$50,000$ as a personal loan from the bank. Beth works for a small start$-$up company, and her annual earnings depend on how the company performs that year. Carl works for a long$-$established company. He receives a stable salary, with a bonus if the company performs well during the year. Assume that the duration and the costs of making both loans are the same.

If all else is constant, the bank would most likely charge a higher interest rate to $q,$