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AP® Macroeconomics

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Interest Rates and Markets

APMACR-H4TYEZ

Suppose a business desires to obtain a loan.

Which of the following is NOT a reason for an interest rate that is above average in the market?

A

Loan request is for a short term not a long term.

B

The loan request is small in size.

C

The business is seeking the loan from a small town lender.

D

It is a new business seeking the loan.

E

The borrower has a poor credit history.