Short-term rates are typically more volatile than long-term rates. This is primarily because short-term rates are influenced by current economic conditions, which are inherently volatile and subject to rapid changes. These rates are sensitive to factors such as changes in monetary policy, inflation rates, and other economic indicators that can fluctuate significantly over short periods. On the other hand, long-term rates are largely determined by expectations of future economic conditions. These expectations are generally more stable and change less frequently, leading to less volatility in long-term rates. Therefore, it is generally observed that short-term rates exhibit more volatility compared to long-term rates.

Choice A is incorrect. Long-term rates are not more volatile than short-term rates. In fact, the opposite is true. Short-term rates are typically more volatile because they are influenced by immediate market conditions and economic news, which can change rapidly.

Choice C is incorrect. It's not accurate to say that both long-term and short-term rates are equally volatile. As mentioned earlier, short-term rates tend to be more volatile due to their susceptibility to immediate market conditions and economic news.

Choice D is incorrect. This statement would only be correct if none of the other options accurately described the relationship between the volatility of long- and short-term financial rates, which isn't the case here as option B correctly describes this relationship.