The administration costs of a loan as a proportion of the total cost of the loan typically
a. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
b. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
c. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
d. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
e. increase as the size of the loan increases, but this has no impact on the interest rates charged for large loans compared to small loans
Question 2
International reserves include all except one of the following. Which is the exception?
a. gold
b. dollars
c. yen
d. Special Drawing Rights
e. oil
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