The rate of interest charged on ____________ loans changes periodically in keeping with prevailing market conditions.
A)nominal-rate
B)standard-rate
C)variable-rate
D)fixed-rate

Question

The rate of interest charged on ____________ loans changes periodically in keeping with prevailing market conditions. ​
A)nominal-rate
B)standard-rate
C)variable-rate
D)fixed-rate

Quizplus · Accepted Answer

A variable-rate loan is one in which the interest rate can change over time, based on the prevailing market conditions. This is different from a fixed-rate loan, where the interest rate stays the same throughout the life of the loan.

The Rate of Interest Charged on ____________ Loans Changes Periodically