The short-term interest rate applies to financial assets that mature:
A) in less than a year.
B) within a year or more.
C) within 2 years.
D) within 5 years.

Question

Quizplus · Accepted Answer

The short-term interest rate typically applies to financial assets that mature in less than a year. This includes instruments such as Treasury bills, commercial paper, and certificates of deposit with maturities of 364 days or less.

The Short-Term Interest Rate Applies to Financial Assets That Mature