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Which of the following would BEST explain a bank's decision to charge a higher interest rate to a borrower with fewer assets? A Thebankdesirescustomerstoinvestfundsasproductivelyaspossible. B
Which of the following would BEST explain a bank's decision to charge a higher interest rate to a borrower with fewer assets?
A Thebankdesirescustomerstoinvestfundsasproductivelyaspossible.
B Thebankneedstochargemoretocompensatefortheriskofthedefault.
C Thebankseekstodiscourageunqualifiedcustomersfromtakingoutloans.
D Thebankrequiresgreaterpaymentstooffsettheloweronespaidbyothers.
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