Since the future holds more uncertainty over longer periods of time,lenders generally want:
A)a higher interest rate for loans over a longer period.
B)a lower interest rate for loans over a longer period.
C)a higher interest rate for loans over a shorter period.
D)None of these is true.

Question

Quizplus · Accepted Answer

Lenders want to be compensated for the increased risk and uncertainty that comes with longer loan periods, therefore they usually charge a higher interest rate for loans over a longer period.

Since the Future Holds More Uncertainty Over Longer Periods of Time,lenders