[Answer] What is the typical relationship between time and interest rate?

Step 1 : Introduction to the question "What is the typical relationship between time and interest rate?"

... A.) Shorter time period usually equals higher interest rates. B.) Longer time periods usually have no affect on interest rates. C.) Longer time period usually equals higher interest rates.* D.) Shorter time periods usually have no affect on interest rates. - The first is called the term structure of interest rates. At a given date, interest rates usually increase with maturity. Basically, it means that if you lend money today, you will not apply the same interest rate if it's a 1-year loan or a 25-year loan.

Step 2 : Answer to the question "What is the typical relationship between time and interest rate?"

Longer time period usually equals higher interest rates.:

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