With interest rates expected to decrease in the future, banks would prefer to make floating-rate loans rather than fixed rate loans.

Name: With interest rates expected to decrease in the future, banks would prefer to make floating-rate loans rather than fixed rate loans.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Banks prefer fixed-rate loans when interest rates are expected to decrease, as they can lock in higher rates and avoid the risk of earning less from floating-rate loans.

With Interest Rates Expected to Decrease in the Future, Banks