Which Is Better, a Fixed-Rate Loan or a Variable-Rate Loan

question 6

Multiple Choice

Which is better, a fixed-rate loan or a variable-rate loan?

• A) a fixed-rate loan, because the lender bears the risk that interest rates will go up
• B) a fixed-rate loan, because they generally cost less than variable-rate loans
• C) a variable-rate loan, because they generally cost less than fixed-rate loans
• D) a variable rate loan, because the lender bears the risk that interest rates will go up
• E) Neither is necessarily better; the choice illustrates the "risk and return go hand in hand" principle.

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Relating to older adults, typically those who are past the middle age and into their retirement years.

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