Why do lenders generally want a higher interest rate when loans stretch over a longer period?
A) The opportunity cost increases over time.
B) There's more uncertainty about potential future investment opportunities.
C) They want to be compensated for the inability to get their money back quickly.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of these are true. 
Lenders generally want a higher interest rate when loans stretch over a longer period because their opportunity cost increases over time, there's more uncertainty about potential future investment opportunities, and they want to be compensated for the inability to get their money back quickly.

Why Do Lenders Generally Want a Higher Interest Rate When