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 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 down.
The rate can only go down.

The interest rate can fall below 0.
The interest rate can fall below 0.

Answer 1

The rate can go up or down, depending upon the index it is tied to.

(Variable‑rate loans adjust with an index and thus can increase or decrease over time.)