Credit and Loans

Question 1

Which rule is important to remember when evaluating risk?

Revolt · Accepted Answer

C: Investments believed to be unpredictable are more risky.

Question 2

Interest rates are generally expressed as a(n) of the loan.

Revolt · Accepted Answer

B: percentage

Question 3

During a period of economic growth, investors are likely to take risks and invest funds.

Revolt · Accepted Answer

A: more

Question 4

The length of time before a loan must be repaid is called the of the loan.

Revolt · Accepted Answer

C: term

Question 5

Monetary policy is directly implemented by .

Revolt · Accepted Answer

A: the Federal Reserve

Question 6

Loans that are considered to be high risk typically have a interest rate.

Revolt · Accepted Answer

C: high

Question 7

Fiscal policy seeks to affect the economy and interest rates by directly modifying .

Revolt · Accepted Answer

B: taxation and spending

Question 8

A decrease in the amount of money available to investors is most likely to result in .

Revolt · Accepted Answer

A: less investment

Credit and Loans Answers