Which of the following reasons for considering long-term loans inherently more risky than short-term loans is most accurate?
A) The loan values are very sensitive to changes in market interest rates.
B) The penalties for closing out a long-term loan early make them unattractive to many investors.
C) There is a greater chance that a borrower will default in a longer timeframe.
D) Long-term loans typically have ongoing costs that accumulate over the life of the loan.
Correct Answer:
Verified
Q84: Use the table for the question(s) below.
Suppose
Q85: If the current inflation rate is 5%,
Q87: Use the table for the question(s)below.
Suppose the
Q88: Use the table for the question(s) below.
Suppose
Q89: If the current inflation rate is 4%
Q91: Use the table for the question(s)below.
Suppose the
Q92: Use the table for the question(s)below.
Suppose the
Q94: Inflation is calculated as the rate of
Q106: The term "opportunity" in opportunity cost of
Q109: The opportunity cost of capital is the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents