Final answer:
It is generally true that borrowers can secure a lower interest rate with a shorter-term loan due to the reduced risk for lenders and the economic principle that higher availability of funds leads to lower interest rates.
Step-by-step explanation:
The statement You may be able to borrow a lower interest rate if you accept a shorter term loan is generally True. Banks and financial institutions often offer lower interest rates for shorter loan terms. This is because a short-term loan carries less risk for the lender compared to a long-term loan, where the chance of default or changes in financial situation over time are greater. Additionally, the economic principle that an increase in the amount of available loanable funds typically leads to a decrease in interest rates applies, meaning more capital available for lending can result in borrowers receiving more competitive rates.