Why is the interest rate of long-term loans lower than that of short-term loans

A.

the value of money increases with inflation

B.

the uncertainty is lower

C.

more borrowers opt for short-term loans

D

it is easier to forecast long-term market movements

E

borrowers are persuaded to borrow a lesser amount

Question

Kristin Massey

4 September, 06:13

+3

Answers (1)

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Desiree Bauer · Answer 1

My best guess would be because of the fees that you have to pay every month along with the monthly payment so i guess a

Why is the interest rate of long-term loans lower than that of short-term loansA.the value of money increases with inflationB.the uncertainty is lowerC.more borrowers opt for short-term loansDit is easier to forecast long-term market movementsEborrowers are persuaded to borrow a lesser amount