Final answer:
A borrower would prefer conditions where they have a good credit history, interest rates are low, or they are a low-risk entity like a high-profit firm, as these factors increase the likelihood of securing favorable loan terms.
Step-by-step explanation:
Under which of the following conditions would you prefer to be the borrower? You would prefer to borrow under conditions where the likelihood of repayment is high, and the cost of borrowing is lower. Therefore, as a borrower, you would look for situations where:
- The borrower (you in this case) has a good credit history and is therefore seen as likely to repay the loan on time.
- Interest rates in the economy have fallen, meaning the cost of borrowing is less and loans are more attractive.
Alternatively, if you are a firm with a record of high profits, you would be seen as a low-risk borrower, likely to repay the loan, which may allow you to secure better loan terms. Conversely, high interest rates and a poor reputation for repaying loans would make borrowing less appealing, as it would be difficult to secure favorable loan terms