If You Have a _____ Rate Loan and You Felt

question 274

Multiple Choice

If you have a _____ rate loan and you felt that interest rates are going to _____, you should consider purchasing an interest rate collar.

• A) fixed; rise
• B) fixed; fall
• C) variable; rise
• D) variable; fall
• E) variable; change but you don't know the direction of the change

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Definitions:

Course of Performance

The conduct between contracting parties that establishes a pattern of behavior, which can influence the interpretation of their contract's terms and obligations.

Substantially Impaired

Significantly reduced in ability or function, often referring to a state of physical or mental incapacity that affects one's legal rights or responsibilities.

Risk Passes

A term used in sales and contract law signifying the point at which the risk of loss or damage to goods transfers from the seller to the buyer.

Destroyed Goods

Items or products that have been damaged to the point where they can no longer serve their intended purpose.