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Which of the following should be considered in determining the spread above prime or other base rate for a new variable - rate loan when

Which of the following should be considered in determining the spread above prime or other base rate for a new variable-rate loan when the loan is made?
a. The overnight federal funds rate. b. The estimate of interest rate volatility.
c. The level of the bank's loan loss reserve.
d. The loan's level of risk.

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