“Long-term loans are riskier for lenders because they cannot accurately predict long-term economic trends.” What economic trends might this statement refer to? What impact would they have on interest rates?

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Kel
The economic trend it is referring to is the Economy. If the Economy goes down then people with loans can no longer afford to keep paying them therefor the loan doesn't completely get paid for and the loan companies lose out on money and will increase interest rates and most people will have to have a bigger down payment that they cannot afford.