Which of the following is true of fixed interest rates?(1 point)

Question

Responses

They are harder to budget for because they vary from month to month.
They are harder to budget for because they vary from month to month.

They are initially higher than variable interest rates.
They are initially higher than variable interest rates.

They can be unpredictable.
They can be unpredictable.

They can change at any time based on an index.

Answer 1

The correct response is: They are initially higher than variable interest rates.

Fixed interest rates are generally more stable and predictable, providing consistent payment amounts over time, unlike variable interest rates which can change based on market conditions.