1. Why do banks issue short-term loans when interest rates rise?

As interest rates rise, the storage rate also rises, issuing short-term loans to ensure the adjustment of the currency market circulation rate

2. Why do loans need to often rise during periods of rising interest rates?

First, interest rates represent the cost of using funds. Rising interest rates lead to an increase in the cost of using funds, which generally leads to a decrease in investment, assuming that investment returns remain unchanged.

Rising interest rates will of course attract more deposits, causing more funds to be deposited in banks. This requires banks to lend these funds out in order to maintain investment. However, in order to ensure that their profits remain unchanged, banks generally increase loan interest rates.

3. If a bank uses short-term deposits as a financing source for long-term fixed-rate loans, when the interest rate rises, the interest income from the loan is (), and the interest expense on the deposit will increase as the interest rate rises...

C

Analysis: If a bank uses short-term deposits as long-term fixed rates, the interest income from loans is fixed, and the interest payments from deposits will increase as interest rates rise. This will reduce the bank's future income

IV. Why are short-term loan interest rates relatively high

1. Long-term interest rates and short-term interest rates are divided based on the length of time. Generally speaking, the interest rate with a loan period of less than one year (including one year) is called a short-term interest rate; the interest rate with a loan period of more than one year is called a long-term interest rate.

2. The interest rate is related to the length of the loan period. Generally speaking, the longer the loan period, the higher the interest rate; the shorter the loan period, the lower the interest rate.

The level of interest rates is directly related to the level of risk. The longer the loan term, the more unknown factors and the greater the possibility of various risks. Correspondingly, the bank will require more returns, so the interest rate will be higher; if the loan term is shorter, then the unknown factors will There are also fewer factors, and the possibility of various risks is smaller, so the interest rate is lower.