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Why are interest rates on long-term loans higher than interest rates on short-term loans?
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5 votes
5 votes
Why are interest rates on long-term loans higher than interest rates on short-term loans?

User Sevko
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2 Answers

20 votes
20 votes

Answer:

loans that are loans

Step-by-step explanation:

loanssss

User Moses Schwartz
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10 votes
10 votes

Answer:

The long-term rate is not always higher, just usually. The reason is borrowers will usually pay more to secure long-term funding, while lenders prefer to be able to get their money back earlier.

Explanation:

User Joe Fontana
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