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:

Mindful Meditation

Mindful meditation is a practice of mindfulness that involves paying deliberate attention to the present moment, often as a way to reduce stress and enhance mental well-being.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, planning, personality expression, and moderating social behavior.

Nonjudgmental

An attitude or approach that refrains from forming a critical opinion or conclusion about something or someone.

Parietal Hemineglect

A neurological condition resulting from damage to the parietal lobe, characterized by the inability to perceive or attend to stimuli on one side of the body or space.