Answered

Would a change in the interest rates from 8% to 7% encourage a banks customers to borrow more money? Explain.

A) No, it would not encourage more borrowing, because a lower interest rate means that they would earn more interest over the course of the loan

B) Yes, it would encourage mor borrowing because a lower interest rate means that they would earn more interest over the course of the loan

C) Yes, it would encourage more borrowing because a lower interest rate means that they would have less interest to repay over the course of the loan

D) No, it would not encourage more borrowing, because a lower interest rate means that they would have less interest to repay over the course of the loan

Answer :

Answer:

The answer would be D

Explanation:

The reason why i got that is an interest rate is the cost of borrowing money. Or, on the other side of the coin, it is the compensation for the service and risk of lending money. In both cases it keeps the economy moving by encouraging people to borrow, to lend, and to spend. But prevailing interest rates are always changing, and different types of loans offer different interest rates. If you are a lender, a borrower, or both, it's important you understand the reasons for these changes and differences.​ They also have a heavy effect on the rare metals trade, including silver stocks.

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