To Compensate for the Uncertainty of Future Interest Rates and the Greater

Multiple Choice

To compensate for the uncertainty of future interest rates and the greater default risk for longer term loans,the lender generally:

A) charges a higher rate of interest on long-term loans.
B) includes a very high number of restrictive debt provisions.
C) is entitled to change the terms of the loan at any time.
D) is entitled to demand repayment of the loan at any time.