Question

What best determines whether a borrower's investment on an adjustable rate loan goes up or down?

a fixed interest rate
a bank's finances.
a market's condition
a person's finances

Answer 1

Market condition is the correct answer.

Answer 2

The market condition.

Step-by-step explanation:

Adjustable interest rate loans will fluctuate according to the business environment. Thus, in a macroeconomically stable situation, rates will be lower, which will not happen in times of market uncertainty. In this way, the market environment will define whether adjustable lending rates will be higher or lower.