What is the primary concern of interest rates from a consumer's perspective?

• A. Access to loans
• B. Cost of borrowing money
• C. Overall economic growth
• D. Investment opportunities

Answer: (B)

The primary concern of interest rates from a consumer's perspective is the cost of borrowing money. When consumers take out loans, such as mortgages, car loans, or personal loans, the interest rate directly affects how much they will pay over the life of that loan. A higher interest rate means higher overall costs in terms of interest payments, making loans more expensive and potentially less affordable. Conversely, lower interest rates reduce the cost of borrowing, making it easier for consumers to take out loans and manage their finances effectively.

While concerns about access to loans, overall economic growth, and investment opportunities are relevant, they are secondary to the immediate impact that interest rates have on the cost of borrowing. Consumers typically prioritize understanding how interest rates will affect their personal financial commitments and budget, which is fundamentally tied to the cost of loans.