Post Utme Babcock University 2024 Commerce Question 38

Practice objective / multiple choice question 38 from the 2024 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2024 Commerce Objective / Multiple Choice
Question 38 POST_UTME_BABCOCK_UNIVERSITY • 2024 • COMMERCE • objective

A bank is considering offering a new type of loan product to its customers. The loan product has a variable interest rate that is tied to the prime lending rate. Which of the following is a key risk associated with this type of loan product?

Answer Options

A. The customer may default on the loan
B. The bank may not be able to recover the loan amount
Correct Answer C. The interest rate may increase significantly
D. The loan product may not be attractive to customers
Correct Answer
C
Correct Option:
The interest rate may increase significantly

About This Question

This is Post Utme Babcock University 2024 Commerce Question 38. It is one of the objective questions from the 2024 Post Utme Babcock University Commerce examination.

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