Which of the Following Reasons for Considering Long-Term Loans Inherently

question 5

Multiple Choice

Which of the following reasons for considering long-term loans inherently more risky than short-term loans is most accurate?

• A) There is a greater chance that inflation may fall in a longer time frame.
• B) The penalties for closing out a long term loan early make them unattractive to many investors.
• C) Long-term loans typically have ongoing costs that accumulate over the life of the loan.
• D) The loan values are very sensitive to changes in market interest rates.

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Definitions:

Southwest Indians

Indigenous peoples of the Southwestern United States, known for their rich cultural traditions, art, and historical presence in the region.

Agricultural Proficiency

The expertise and efficiency in farming practices, crop production, and livestock management, contributing to food security and agricultural sustainability.

Pueblo Colonists

Early settlers or inhabitants of the Pueblo regions, known for their unique cultural practices and adobe architecture.

Uneasy Alliance

A cooperative relationship between parties or nations that have differing interests or ideologies, often marked by mutual distrust but pursued for mutual benefit.