Which of the following best completes the passage below?
The more worried investors are about losing their money, the more they will demand a high potential return on their investment; great risks must be offset by the chance of great rewards. This principle is the fundamental one in determining interest rates, and it is illustrated by the fact that ______

Question

Examsnet · Accepted Answer

Correct Answer is :  lenders receive higher interest rates on unsecured loans than on loans backed by collateral.

GMAT Verbal Reasoning Practice Test 5