Which factor or factors listed below are external influences on a loan’s interest rate?
i. the borrower’s credit history
ii. the length of the loan
iii. the federal funds rate
a.
i and ii
b.
i and iii
c.
ii and iii
d.
iii only

Option 'd' is correct. only III is correct.

Step-by-step explanation:

Factor that has external influences on a loan's interest rate is " the federal funds rate ".

As Federal Funds Rate explains how much consumers can borrow and how many loans a bank can issue in a particular year and at what rate bank should borrow money.

It is the external influence on a loan's interest rate whereas internal influence would be the borrower's credit history and the length of the loan.

Hence, Option 'd' is correct. only III is correct.

figure c

step-by-step explanation:

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