1.Â Â Â Â Â Â (True/False. Explain) Longer the duration of the loan, higher the interest rate. 2.Â Â Â Â Â Â (True/False. Explain) higher the risk of...

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Economics

1.Â Â Â Â Â Â (True/False. Explain)Longer the duration of the loan, higher the interest rate.
2.Â Â Â Â Â Â (True/False. Explain)higher the risk of the loan, lower the interest rate.
3.Â Â Â Â Â Â (True/False. Explain) $1today is worth more than $1 tomorrow.
4.Â Â Â Â Â Â What is Initial PublicOffering (IPO)? Can you buy one from another investor?
5.Â Â Â Â Â Â What is crowdfunding?

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Answer to Part 1 If a bank were to give you a loan for a longer period of time usually the interest charged on the same is relatively higher than short term loans This is to accommodate for the fact that the risk of operating and giving away loans to such people is relatively on the higher side Thus true is the correct option Answer to Part 2 If the risk of default is high the interest rate See Answer

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