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

question 20

Multiple Choice

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

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

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Definitions:

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can negatively affect performance and self-perception.

Race Indication

Information or signs that suggest or determine an individual's racial background or identity.

Test Performance

Refers to an individual's performance on standardized tests, measuring aspects like intelligence, aptitude, or specific skills.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can impair performance in a variety of settings.