The long-term interest rate ______.

A.

is generally a bit higher than the short-term interest rate because long-term loans are riskier than short-term loans

B.

fluctuates more than the short-term rate because people borrow long-term and lend short term

C.

is generally a bit higher than the short-term interest rate because banks prefer to make short-term loans

D.

is not influenced by expectations about future short-term interest rates because expectations change in the long run

E.

is not influenced by current short-term interest rates because people borrow long term

Answer rating: 100% (QA)

Long term loans are riskier than short term loan because long term loan may beco... View the full answer