Which of the following reasons for considering long-term loans inherently more risky than short-term loans most accurate?
A. There is a greater chance that a borrower will default in a longer time - frame.
B. The loan values are very sensitive to changes in market interest rates.
C. The penalties for closing out a long term loan early make them unattractive to many investors.
D. Long term loans typically have ongoing costs that accumulate over the life of the loan.
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