Choose the Word or Phrase in [ ] Which Will

question 54

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The majority of consumer loans are made with [fixed | variable] interest rates.

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Definitions:

Noncallable Bonds

Bonds that cannot be redeemed by the issuer before their maturity date.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, usually at a predetermined price.

Future Interest Rates

An indication of what the cost of borrowing money or the rate of return on investments will be at a future date.

Callable Bonds

Bonds that give the issuer the right to redeem them before their maturity date at a pre-specified price.