Which of the following interest rates will be least affected by a shift in monetary policy that alters the money supply?
A) a three-month certificate of deposit
B) interest on checking accounts
C) a one-year bank loan
D) a thirty-year home mortgage

Question

Quizplus · Accepted Answer

Long-term interest rates, like those on a thirty-year home mortgage, are generally less sensitive to short-term changes in monetary policy compared to short-term rates.

Which of the Following Interest Rates Will Be Least Affected