91.8k views
2 votes
Why are interest rates on long-term loans higher than interest rates on short-term loans?

User Mehrdad
by
8.1k points

2 Answers

6 votes

Answer:

loans that are loans

Step-by-step explanation:

loanssss

User Mkobuolys
by
8.2k points
4 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 Dhrumil Bhankhar
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories