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

Name: If interest rates are expected to decrease in the future, banks would prefer to make floating-rate loans rather than fixed rate loans.
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Banks would prefer to make fixed-rate loans when interest rates are expected to decrease in the future, so they can lock in the higher interest rates before they fall.

If Interest Rates Are Expected to Decrease in the Future