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Jackson6612 Posted 18 years ago
Grammar

The higher the interest rate, the greater...

0 I couldn't understand the following sentence:02br
00The higher the interest rate, the greater the financial risk - which, of course, cuts both ways. 0-
  

Top answer

02br 02br 00The bank loaning the money wants more return (a higher rate) because they are taking a greater risk. 0-

— BarbaraPA

  • 02br 02br 00The bank loaning the money wants more return (a higher rate) because they are taking a greater risk.
  • 0-
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5 Answers
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0If a person is not a good credit risk (they have a poor history of how they have paid their bills in the past), they will be charged a higher interest rate.02br
02br
00The bank loaning the money wants more return (a higher rate) because they are taking a greater risk. The loan is a greater risk to them, but it is also a greater risk for the borrower - the higher interest rat
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01cite10Jackson661212cite10I couldn't understand the following sentence:12br
10The higher the interest rate, the greater the financial risk - which, of course, cuts both ways.12blockquote
10Grammar Geek is right but this advice doesn't apply only to loans. If you are investing your money in something (stocks, bon
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0 Thank you, GG and RayH. 0-
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0"Cutting both ways" alludes to a double-edged sword.0-
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0 Thanks, Avangi. 0-
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