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Which of the following is not correct: The interest rate paid to savers depends on

a)the riskiness of the loan
b)savers' time preferences for current versus future consumption
c)None of these are correct
d)All of these are correct
e)the expected future rate of inflation
f)the rate of return that producers expect to earn on invested capital

User Inky
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1 Answer

3 votes

Final answer:

All the given options are correct as factors that influence the interest rate paid to savers including riskiness, time preferences, expected inflation, and expected rates of return.

Step-by-step explanation:

The question 'Which of the following is not correct: The interest rate paid to savers depends on a)the riskiness of the loan b)savers' time preferences for current versus future consumption c)None of these are correct d)All of these are correct e)the expected future rate of inflation f)the rate of return that producers expect to earn on invested capital' is focused on factors that influence the interest rate paid to savers. In this context, all the given options (a, b, e, and f) are indeed correct as they are all factors that can influence interest rates. The riskiness of the loan, savers' time preferences, the expected future rate of inflation, and the rate of return that producers expect are all considered by financial institutions when determining the interest rates for savings.

User Alexander Otavka
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8.5k points