Question

Short-term interest rates show the cost of borrowing money for how long?

A.between 10 and 30 years
B.between a few months and two years
C.for no more than a month
D.(correct answer Gradpoint)for a few days or months

Answer 1

The correct answer is D. Short-term interest rates show the cost of borrowing money for a few days or months. These rates are typically used to price financial instruments with maturities ranging from overnight to two years, and are influenced by a variety of factors, including central bank policies, economic indicators, and market demand for credit.