On average, short-term interest rates are higher than long-term rates to compensate for higher risk in the short term.

Name: On average, short-term interest rates are higher than long-term rates to compensate for higher risk in the short term.
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On average, long-term interest rates are typically higher than short-term rates to compensate for the higher risk over a longer period, including inflation and uncertainty about future economic conditions. This is known as the normal yield curve.

On Average, Short-Term Interest Rates Are Higher Than Long-Term Rates