Banker and expect interest rates to rise in the future

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Reference no: EM131620419

If you are a banker and expect interest rates to rise in the future, would you want to make short-term or long loans?

a- You would want to make long-term loans to secure the higher interest rate for an extended of time

b- You would want to make short-term loans since there is no guarantee that the intreset rate will rise as expected

c- You would want to make short-term loans so you can reinvest the funds at higher interest rates after their maturity

d- Both short- term and long-term loans will be profitable with an expected interest rate increase

Reference no: EM131620419

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