Choose the Word or Phrase in [ ] Which Will

question 131

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.
-A person who pays her credit balance off every month should look for a credit card with [a low interest rate | no annual fee].

---

Definitions:

Floating Rate

An interest rate that changes over time as it is tied to an underlying benchmark or index, commonly used in loans and bonds.

Bond Indenture

A legal contract between a bond issuer and bondholders, detailing the terms and conditions under which a bond is issued, including the interest rate, maturity date, and covenants.

Protective Covenants

Legal stipulations in loan agreements that aim to preserve the value of the collateral and ensure borrowers uphold specific conditions.

Repayment Arrangements

Agreements between a lender and borrower detailing the terms for paying back a loan, including payment schedule and interest rates.