Q507
If demand of loanable demands decrease then borrowing cost of funds is
A.
upside
B.
lower
AnswerC.
higher
D.
zero
Answer: Option B
Solution
Answer: Option B
Solution:
If demand of loanable demands decrease then borrowing cost of funds is lower. Cost of borrowing refers to the total amount a debtor pays to secure a loan and use funds, including financing costs, account maintenance, loan origination, and other loan-related expenses.