What does the value of collateral or down payment affect? check all that apply.

the amount borrowed
the interest rate
the lender’s perceived risk
the repayment schedule
the credit cards available

First, you should know what collateral and down payment mean. Collateral is an asset that a lender takes as security for a loan. If the borrower avoidances on the loan payments, the lender can grab the collateral and resell it to recover the losses. A down payment is a payment made in cash during the beginning of the acquisition of an expensive good or service. The payment classically signifies only a percentage of the full purchase price. It is normal that the purchaser makes financing negotations to cover the lasting amount owed to the seller. With this explained, we can say that the correct options are: the amount borrowed (A), the lender’s perceived risk  (C) and the repayment schedule (D)

the answers are :

the amount borrowed

the interest rate

the lender’s perceived risk

b) to encourage free trade

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