Lenders normally feel that the relative risk associated with short-term debt is the risk associated with long- term debt.

Name: Lenders normally feel that the relative risk associated with short-term debt is the risk associated with long- term debt.
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Lenders typically perceive short-term debt as having lower risk compared to long-term debt because it is repaid more quickly, reducing the exposure to changes in interest rates and the borrower's financial condition over time.

Lenders Normally Feel That the Relative Risk Associated with Short-Term