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olga2289 [7]
4 years ago
8

What is the typical relationship between time and interest rate?

Business
1 answer:
Margaret [11]4 years ago
4 0

Answer:

B. Shorter time periods usually have no affect on interest rates.

Explanation:

The interest rate is correllate to the potential risk of the investment.  

As in a long period, there’re more unpredetermined risks, and we normally say “high risk high return). Thus a longer time period ussually have higher interest rate and vice versa.

In shorter period, we may dertermine the risk more easily then it deserves to enjoy lower interest risk.

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