Hello Sir, I hope you're having a good day....please help me with this one factor from your notes, wouldn't the interest rates be higher for borrower too?
''Size:
If a large sum of money is lent or borrowed, there are administrative savings; hence a
higher rate of interest can be paid to a lender and a lower rate of interest can be
charged to a borrower than would normally be the case. ''
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Size affecting interest rates
5y ago
5y ago#1For this factor on its own, since it costs the lender less in administrative costs they can charge lower interest that they would if the amount was smaller.
5y ago#2Oh ok, thank you for the confirmation!!
5y ago#3You are welcome :-)
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