An instrument does not have to be payable with interest,but if it is,the amount of interest being charged may be expressed as either a ________ or a(n)________ rate.
A) fixed; variable
B) prime; subprime
C) legal; equitable
D) par; non-par
E) commercial; non-commercial

Question

Quizplus · Accepted Answer

The interest rate on a payable instrument can be fixed, meaning it remains the same throughout the life of the instrument, or variable, meaning it fluctuates based on an index such as the prime rate. The other choices listed are not relevant to interest rates on instruments.

An Instrument Does Not Have to Be Payable with Interest,but