which of the following is true with regards to rising interest rates?
A. Use Long-term loans to take advantage of current low rates.
B. The term of the loan option is not impacted by rising interest rates.
c. Use Short-term to take advantage of low interst rates.
D. Select Long-term savcings option to lock in current interest rates.
i think it id c
To determine the correct answer, let's break down each option and evaluate its validity:
A. Use Long-term loans to take advantage of current low rates.
This option is generally true. When interest rates are low, choosing long-term loans allows borrowers to lock in lower rates for an extended period. As interest rates rise, having a long-term loan can protect against future increases.
B. The term of the loan option is not impacted by rising interest rates.
This statement is false. Rising interest rates can impact loan options in various ways. Lenders may adjust the terms, such as increasing the interest rate or shortening the loan duration, to account for the changing market conditions.
C. Use Short-term to take advantage of low interest rates.
This option might be true. While short-term loans often have lower interest rates, they may not be the best choice if interest rates are rising. Short-term loans require more frequent refinancing, which could expose borrowers to higher rates in the future.
D. Select Long-term savings option to lock in current interest rates.
This option is generally true. By choosing long-term savings options, such as certificates of deposit (CDs) or long-term bonds, individuals can lock in current interest rates for the duration of the investment. This can be beneficial when interest rates are rising because the locked-in rate remains unaffected.
Based on the explanations provided, the true statement with regards to rising interest rates is:
A. Use Long-term loans to take advantage of current low rates.
D. Select Long-term savings option to lock in current interest rates.