What Happens to ATF When It Becomes Too Hot

question 57

Multiple Choice

What happens to ATF when it becomes too hot?

• A) It can produce cavitation bubbles in the fluid and reduce converter efficiency
• B) It oxidizes or breaks down prematurely
• C) It will shorten the life of the transmission fluid greatly
• D) All of the above

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Definitions:

Effective Interest Rate

A measure of the real cost of borrowing that takes into account the effect of compounding interest in addition to the nominal rate.

Compensating Balance

Compensating Balance is a minimum bank account balance that a borrower must maintain as part of a loan agreement, often used by banks as a requirement for extending a loan.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest.