Question

changes in interest rates can cause both pleasant and unpleasant results.
how does an increase in interest rates impact car loans?
choose 1 answer:
a it makes financing a car cheaper.
b it makes financing a car more expensive.
c it does not affect financing a car.
d rates will be lowered on existing car loans.

Explanation:

When interest rates increase, the cost of borrowing money (like for a car loan) goes up. Lenders charge more interest on the loan, so financing a car becomes more expensive. Option A is wrong because higher rates don't make financing cheaper. Option C is wrong as interest rates do affect loan financing. Option D is wrong because an increase in general interest rates doesn't lower rates on existing car loans (usually existing loans have fixed rates or follow original terms, and new loans get higher rates).

Answer:

B. It makes financing a car more expensive.