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

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.