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 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 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.
Responses
The rate can only go down.
The rate can only go down.
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 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.
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 fluctuate based on a specific benchmark or index, which means they can increase or decrease 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 fluctuate based on a specific benchmark or index, which means they can increase or decrease over time.