Why Do Lenders Generally Want a Higher Interest Rate When

question 48

Multiple Choice

Why do lenders generally want a higher interest rate when loans stretch over a longer period?

• A) The opportunity cost increases over time.
• B) There's more uncertainty about potential future investment opportunities.
• C) They want to be compensated for the inability to get their money back quickly.
• D) All of these are true.

---

Definitions:

Class Challenge

The act of disputing and questioning the established social class hierarchy, often aiming to address and rectify inequalities.

False Consciousness

A term used in Marxist theory to describe the way in which material, ideological, and institutional processes in capitalist society mislead the proletariat about their real interests.

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups within a society.

Class Consciousness

Awareness of one's own social class position and the collective interests of that class.