(See Solution) (a) Identify a type of loan that usually has a low interest rate, and explain why it has a low interest rate. (b) Identify a type of investment


Question: (a) Identify a type of loan that usually has a low interest rate, and explain why it has a low interest rate.

(b) Identify a type of investment that usually pays a high rate of return, and explain why it pays a high return.

(c) How important is risk in determining interest rates? Explain.

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