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30 January, 14:10

Which one of the following statements about risk-based financing is false?

A. If you are a low risk, you should pay less to borrow money.

B. You can ignore risk-basked financing.

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  1. 30 January, 14:23
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    Are you sure these are the only options? From what is given, the most suitable answer is B. You can ignore risk-basked financing.

    You cannot ignore the risk factor when it comes to financing. Mainly, because it is the risk that dictates mainly over the interest and the cost of financing.

    The option A is correct, when the risk is low you have ro pay a lesser amount as interest and other related costs while when it is high, you'll have to pay more.
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