what best determines whether a borrowers interest rate on an adjustable rate loan goes up or down?\n○ a…

what best determines whether a borrowers interest rate on an adjustable rate loan goes up or down?\n○ a fixed interest rate\n○ a banks finances\n○ a markets condition\n○ a persons finances

what best determines whether a borrowers interest rate on an adjustable rate loan goes up or down?\n○ a fixed interest rate\n○ a banks finances\n○ a markets condition\n○ a persons finances

Answer

Brief Explanations:

Adjustable - rate loans have interest rates that are tied to market - based indices. Market conditions such as changes in the prime rate, economic growth, inflation, etc. influence these indices, which in turn determine whether the borrower's interest rate goes up or down. A fixed interest rate is not relevant as it doesn't change. A bank's finances and a person's finances do not directly determine the movement of an adjustable - rate loan's interest rate.

Answer:

C. a market's condition