Generally, long-term loans have higher interest rates than short-term loans because of
A. the general expectation of higher future rates of inflation.
B. lender preferences for shorter-term, more liquid loans.
C. greater demand for long-term rather than short-term loans relative to the supply of such loans.
D. all of the above.
Answer:D
Generally, long-term loans have higher interest rates than short-term loans because of
A. the general expectation of higher future rates of inflation. B. lender preferences for shorter-term, more liquid loans. C. greater demand for long-term rather than short-term loans relative to the supply of such loans. D. all of the above.