4
QuizMultiple Choice

The American Market Economy — Test

Question 4 • Economics

Which describes an investor’s primary goal of buying a loan?

Answer
A
to provide capital to a business
B
to bolster the economy
C
to grow a business
D
to earn a profit off the interest

Explanation

An investor who buys a loan becomes entitled to receive the borrower’s repayments, including interest. The primary goal is to earn a profit from that interest, so the correct choice is “to earn a profit off the interest.” Providing capital is generally the lender’s role when the loan is first made.

AI-written and checked against the verified answer.

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