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.

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Definitions:

Universal Declaration of Human Rights

A foundational document adopted by the United Nations in 1948, outlining the rights and freedoms entitled to all human beings.

Military Industry

A sector of the economy involved in the production and sale of military weapons, equipment, and services.

Cold War

A period of geopolitical tension between the Soviet Union and its allies and the United States and its allies, characterized by threats, propaganda, and other measures short of open warfare, from the end of World War II until the dissolution of the Soviet Union.

Operation Dixie

A post-World War II campaign initiated by the American labor movement to unionize industrial workers in the southern United States.