Explain a lender decreasing the interest rate for a borrower

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Problem 1: Which of the following reasons is most likely to explain a lender decreasing the interest rate for a borrower?

A) The expected inflation rate is expected to be high.

B) The number of borrowers seeking funds is high.

C) The investment will be for a long period of time.

D) The borrower is judged to have a low degree of risk.

E) The number of savers depositing funds at the bank is low.

Reference no: EM132965273

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