Which is true of variable-rate loans?(1 point) Responses The rate can go up or down, depending upon the index it is tied too. The rate can go up or down, depending upon the index it is tied too. The rate can only go up. The rate can only go up. The interest rate can fall below 0. The interest rate can fall below 0. The rate can only go down.
1 answer
The correct statement about variable-rate loans is: The rate can go up or down, depending upon the index it is tied to.
Variable-rate loans, also known as adjustable-rate loans, have interest rates that can change over time based on fluctuations in a reference index.
