Author Question: Which of the following does not contribute to differences in interest rates? a. Different loans are ... (Read 32 times)

james · **on:** Jun 30, 2018

Which of the following does not contribute to differences in interest rates?
a. Different loans are for different periods of time.
b. Large loans generate more administrative costs per dollar than smaller loans.
c. Different loans are subject to different tax rules.
d. Loans to established businesses are evaluated differently from loans to new businesses.
e. The longer the period of repayment, the greater the risk of higher-than-expected inflation.

Question 2

If the current account shows a deficit, the capital account must show a surplus of the same amount.
a. True
b. False