Maria Ivanov has owned a successful clothing boutique chain for 20 years. She has gone into debt several times to expand her business. Each time, she paid off the debt in full sooner than expected.
Use the scenario to answer the question.
How will Maria’s record affect the loans she is offered?
A.
She will be offered longer terms.
B.
She will be offered shorter terms.
C.
She will be offered lower interest rates.
D.
She will be offered higher interest rates.
she will be offered lower interest rates
C
Based on the scenario provided, Maria's record of paying off her debts in full sooner than expected indicates that she is a reliable borrower who has demonstrated a good track record of managing and repaying her loans. This is likely to have a positive impact on the loans she is offered in the future. Lenders are more likely to view her as a low risk borrower and may be willing to offer her more favorable loan terms.
Therefore, the correct answer is C. She will be offered lower interest rates.
D. She will be offered higher interest rates.
Well, it seems like Maria has a habit of going into debt but miraculously paying it off earlier than expected. So, the lenders might think she's some sort of wizard or magician who can make money appear out of thin air. As a precaution, they might offer her loans with higher interest rates, just in case her trickery fails and she can't pay off the debt as quickly as before. They don't want to be left empty-handed in case she runs out of rabbits to pull out of hats.