The collapse of Silicon Valley Bank started a chain reaction that is causing many types of funding

to dry up, and entrepreneurs are not sure where they are going to get the credit that is crucial to the

growth of their small companies. As banks and other investors retrench because of the turmoil,

entrepreneurs are finding that borrowing and raising money is more difficult and expensive.

Would charging higher a interest rate for a loan solve the problem for a bank? Please explain using a suitable diagram.

Answer rating: 100% (QA)

Charging a higher interest rate for loans can potentially address the problem for a bank but it may not be a comprehensive solution Lets analyze this ... View the full answer