Classify each statement as either true or false. You are currently in a labeling module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. If two short-term assets offer different interest rates, then investors will move their wealth towards the asset with the lower return. There is no practical difference between long-term interest rates and short-term interest rates. Money demand is affected by short-term interest rates and not long-term interest rates. Interest rates on financial assets that mature in ten months or less are long-term interest rates. The opportunity cost of holding money falls when short-term interest rates fall. Answer Bank