Which of the following reasons for considering long-term loans inherently more risky than short-term loans is most accurate?
A)There is a greater chance that a borrower will default in a longer time-frame.
B)The penalties for closing out a long term loan early make them unattractive to many investors.
C)Long term loans typically have ongoing costs that accumulate over the life of the loan.
D)The loan values are very sensitive to changes in market interest rates.

Question

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The Answer of Which of the following reasons for considering long-term loans inherently more risky than short-term loans is most accurate?
A)There is a greater chance that a borrower will default in a longer time-frame.
B)The penalties for closing out a long term loan early make them unattractive to many investors.
C)Long term loans typically have ongoing costs that accumulate over the life of the loan.
D)The loan values are very sensitive to changes in market interest rates.

Which of the Following Reasons for Considering Long-Term Loans Inherently