Which fluctuate more, long-term or short-term interest rates?Why?(Poin
QUESTION
Which fluctuate more, long-term or short-term interest rates?Why?(Points: 4)
imum impact is felt on the short term rates. On the other hand, long term interest rates do not change frequently on year to year expectations. Also, the short term rates are determined by inter-bank transactions done overnight. Since bank requirements fluctuate widely, so does the short term interest rates.
ANSWER:
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