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    Question

    Which factor most strongly affects loan demand in rising

    interest rate environment?
    A Branch interiors Correct Answer Incorrect Answer
    B Price sensitivity Correct Answer Incorrect Answer
    C Logo design Correct Answer Incorrect Answer
    D Staff uniforms Correct Answer Incorrect Answer
    E Advertising frequency Correct Answer Incorrect Answer

    Solution

    Higher rates increase EMI, affecting demand. Why others are incorrect: Visual elements do not directly affect financial decision; Advertising cannot offset high rate sensitivity. Banking Example: Reduced housing loan demand after rate hike.

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