A lender demands an interest rate in part to compensate for any expected ___________, so that the money that is repaid in the future will have at least as much buying power as the money that was originally loaned.
A. risk premium
B. inflation
C. compound interest
D. opportunity costs
Answer:B
A lender demands an interest rate in part to compensate for any expected ___________, so that the money that is repaid in the future will have at least as much buying power as the money that was originally loaned.
A. risk premium B. inflation C. compound interest D. opportunity costs
Explanation: Type: Multiple Choice