When the Market Interest Rate Goes Up,the Rate on Variable-Rate

question 48

True/False

When the market interest rate goes up,the rate on variable-rate loans goes up.

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Definitions:

Securities and Exchange Act

A U.S. law enacted in 1934 to regulate securities transactions on the secondary market, thereby protecting investors and maintaining fair and efficient functioning of the securities markets.

New York Stock Exchange

A leading global securities exchange where stocks, bonds, and other financial instruments are traded, located in New York City.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that insures deposits at banks and savings associations.

Posteffective Period

In securities registration, the period that begins when the SEC declares the registration statement effective and ends when the issuer sells all the securities offered or withdraws them from sale.