Short-term interest rates are generally lower than long-term interest rates.

Name: Short-term interest rates are generally lower than long-term interest rates.
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Quizplus · Accepted Answer

This is typically true because long-term interest rates involve greater risk and uncertainty over time, so lenders require a higher return to compensate for that risk. Short-term interest rates, on the other hand, are generally more stable and less risky, so they offer a lower return.

Short-Term Interest Rates Are Generally Lower Than Long-Term Interest Rates