Which One of the Following Statements Is Correct About a Floating

question 7

Multiple Choice

Which one of the following statements is correct about a floating interest rate loan if the interest rate is defined as "Prime plus 1 percent"? The interest rate:

• A) is set to vary at a rate equal to the prime rate plus 1 percent.
• B) can fluctuate up to a maximum of 1% above the current prime rate over the life of the loan.
• C) will be fixed at the current prime rate plus 1 percent.
• D) will vary with the prime rate but changes will only occur in 1 percent intervals.

---

Definitions:

Abscess

A collection of pus (white blood cells, bacteria, and dead skin cells) that forms as a result of infection.

Liver Functions

Involved in detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Natural Killer Cells

A type of lymphocyte (white blood cell) that plays a crucial role in the body's innate immune response by targeting tumor cells and virus-infected cells.

Target Cancer Cells

The practice of directing cancer treatments towards specific cancer cells, often to reduce damage to normal cells and improve treatment efficacy.