Many lending institutions offer ________ loans.These loans tie the interest rate to some set measure,such as a major bank's prime rate or another well-known rate; as a result,the interest changes during the life of the loan.

Question

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The term "variable" refers to the fact that the interest rate on this type of loan can fluctuate or vary throughout the life of the loan. The interest rate is typically tied to some benchmark rate, such as the prime rate, and will change as that benchmark rate changes.

Many Lending Institutions Offer ________ Loans