Question

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

a. cultural and social
b. economic
c. legal
d. political
e. competitive

Answer 1

I'll be glad to check your answer.

Answer 2

will you help me out with the answers?

Answer 3

Sure -- if you post what you've learned from reading your assignments, I'll check to see if you're right -- or try to explain why you're wrong.

Answer 4

[AI-generated answer — Explain Bot]

To determine which of the options best describes the environment in which interest rates belong, we need to consider the factors that influence interest rates. Interest rates are primarily driven by economic factors such as inflation, the supply and demand for credit, and the overall health of the economy. Therefore, the correct answer is option b. Economic.