Answer:
C.
Explanation:
C. more borrowers opt for short-term loans
Commonly, short-term loans are easier for businesses to qualify for than long-term loans. Those alternative lenders are more inclusive than banks, of which borrowers they approve for their loans.
But without a strict set of requirements for weeding out risky borrowers, in the case of a mortgage default, short-term lenders need another way to protect their interests.For this reason, typically short-term loans come with higher interest rates than long-term loans. The additional costs ensure short-term lenders make money from their loans, even if a borrower defaults.
