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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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