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 is ot impacted by rising interst rates.
C. Use short term loans to take advantage of low iterest rates.
D. Select long-term savings option to lock in current rates.

a

To determine which of the given options is true with regards to rising interest rates, let's analyze each option:

A. Use long-term loans to take advantage of current low rates.
This statement is true. When interest rates are low, taking out a long-term loan can be beneficial because it allows you to secure a low interest rate for a longer period of time, potentially saving money over the life of the loan.

B. The term of the loan is not impacted by rising interest rates.
This statement is false. Rising interest rates can affect the term of the loan. As interest rates increase, borrowers may be required to pay higher monthly installments or extend the loan term to keep the payments affordable.

C. Use short-term loans to take advantage of low interest rates.
This statement is false. Short-term loans typically have higher interest rates compared to long-term loans. So, it might be more advantageous to use long-term loans when interest rates are low.

D. Select long-term savings option to lock in current rates.
This statement is true. If you are looking to save money and lock in the current interest rates, selecting a long-term savings option is a good strategy. This ensures that your savings will continue to earn at the current rate, even if interest rates rise in the future.

In conclusion, the correct answer is A. Use long-term loans to take advantage of current low rates.