Other things equal, the ________ the real interest rate, the ________ the potential pool of borrowers

A) higher; less risky
B) higher; more risky
C) lower; smaller
D) lower; less qualified

B

Economics

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If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity cost of holding the deposit is:

a. 11.5 percent. b. 15 percent. c. 8 percent. d. 3.5 percent. e. 13.5 percent.

Economics

If the interest rate is 8 percent, then what is the present value of $5,000 to be received in ten years?

Economics