Question
Which is true of variable-rate loans?(1 point)
Responses
The rate can only go up.
The rate can only go up.
The rate can only go down.
The rate can only go down.
The interest rate can fall below 0
The interest rate can fall below 0
The rate can go up or down, depending upon the index it is tied too.
Responses
The rate can only go up.
The rate can only go up.
The rate can only go down.
The rate can only go down.
The interest rate can fall below 0
The interest rate can fall below 0
The rate can go up or down, depending upon the index it is tied too.
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, also known as adjustable-rate loans, have interest rates that can change based on market conditions, typically tied to a specific index.
**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 based on market conditions, typically tied to a specific index.