Question

What is the typical relationship between time and interest rate? a. Longer time period usually equals higher interest rates. b. Shorter time period usually equals higher interest rates. c. Longer time periods usually have no effect on interest rates. d. Shorter time periods usually have no effect on interest rates.

Answer 1

The answer is a, the more you wait to get you money back the more you charge in interest, you have to be paid to wait.