Generally, Long-Term Loans Have Higher Interest Rates Than Short-Term Loans

question 155

Multiple Choice

Generally, long-term loans have higher interest rates than short-term loans because of

• A) the general expectation of higher future rates of inflation.
• B) lender preferences for shorter-term, more liquid loans.
• C) greater demand for long-term rather than short-term loans relative to the supply of such loans.
• D) all of the above.

---

Definitions:

Freudian Psychodynamic

A theoretical framework that focuses on unconscious processes and childhood experiences in shaping personality and behavior.

Covert Processes

Covert processes refer to mental operations or thoughts that are automatic or subconscious, influencing behavior without conscious awareness.

Overt Actions

Visible or observable behaviors that can be directly seen and measured by others.

African American Psychology

A branch of psychology that studies the experiences, cultures, and historical backgrounds of African American individuals and their impact on mental health and behavior.