Question

1. A interest rate that does not change during the life of the loan is a

A. High
B. Variable
C. Fixed
D. Current

2. A interest rate that changes based on the base rate used by the bank
A. Current
B. Fixed
C. High
D. Variable

Answer 1

1,C. Fixed

2.D. Variable

Step-by-step explanation:

A fixed-rate loan has an interest rate that doesn't change throughout the life of the loan. Because the rate remains the same for the entire term, the monthly loan payment shouldn't change, resulting in a relatively low-risk loan. As you compare loan options, note whether or not loans feature fixed rates

.A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.