Which factor or factors listed below are external influences on a loan's interest rate?
1. the borrower's credit history
II. the length of the loan
III. the federal funds rate
a. I and 11
b. I and III
c. ll and III
d. III only

answer:

b. l and ll

Step-by-step explanation:

The federal funds rate is the interest rate between banks and banks, not banks and people.

the simplified form is

step-by-step explanation:

we want to simplify the expression,

let us change the middle bar to a normal division sign to obtain,

we multiply the first fraction by the reciprocal of the second fraction to obtain,

we factor to obtain,

we cancel the common factors to get,

we simplify to get,

the correct answer is b