Interest rates on short-term funds move up and down frequently.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender over a specified period.

Short-Term Funds

Investments that are made for a short duration, typically less than one year, to meet immediate financial requirements.

Comprehend the fluctuations in interest rates on short-term funds and factors influencing these changes.

Verified Answer

Final Answer :

True

Explanation :

Interest rates on short-term funds are subject to frequent fluctuations due to changes in monetary policy, economic conditions, and market demand.

Learning Objectives

Comprehend the fluctuations in interest rates on short-term funds and factors influencing these changes.