Explain Why Long-Term Financing Is More Expensive but Less Risky

question 110

Essay

Explain why long-term financing is more expensive but less risky than short-term financing.

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Definitions:

Speaking and Listening

Fundamental communication skills involving orally conveying messages and paying attention to what others say, often considered together in the context of effective interpersonal interaction.

Right Brain Dominant

Referring to individuals who are more inclined towards creativity, intuition, and holistic thinking, characteristics associated with the right hemisphere of the brain.

Short-Term Memory

A type of temporary memory that holds a small amount of information in an active, readily available state for a short period of time.

Long-Term Memory

A part of the memory system capable of storing large amounts of information for long periods of time.