Question
Which is true of variable-rate loans?(1 point)
Responses
The rate can only go down.
The rate can only go down.
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 interest rate can fall below 0.
The interest rate can fall below 0.
The rate can only go up.
Responses
The rate can only go down.
The rate can only go down.
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 interest rate can fall below 0.
The interest rate can fall below 0.
The rate can only go up.
Answers
GPT-4o mini
The correct response is:
**The rate can go up or down, depending upon the index it is tied to.**
Variable-rate loans typically have interest rates that can fluctuate based on a specific benchmark or index rate, which can lead to increases or decreases in the interest rate over time.
**The rate can go up or down, depending upon the index it is tied to.**
Variable-rate loans typically have interest rates that can fluctuate based on a specific benchmark or index rate, which can lead to increases or decreases in the interest rate over time.