The increase in the interest rate that the market charges on _________ loans over __________ loans is called the ____________.
A) short-term; long-term; term premium
B) long-term; short term; yield premium
C) short-term; long-term; yield premium
D) long-term; short-term; term premium

Question

Quizplus · Accepted Answer

The increase in the interest rate that the market charges on long-term loans over short-term loans is referred to as the term premium. This reflects the additional risk and uncertainty associated with lending money over a longer period.

The Increase in the Interest Rate That the Market Charges