Which of the following mortgages would you prefer to hold if you were a lender and you expected inflation of uncertain magnitude?

Name: Which of the following mortgages would you prefer to hold if you were a lender and you expected inflation of uncertain magnitude?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Adjustable-rate mortgage loans are preferable for lenders in an uncertain inflation environment because the interest rate can be adjusted to reflect changes in inflation, protecting the lender from inflation risk.

Which of the Following Mortgages Would You Prefer to Hold