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A Variable Rate Loan Commitment

Question 18

Multiple Choice

A variable rate loan commitment


A) normally stipulates a borrowing rate based on an index rate.
B) provides as much interest rate insurance as a fixed rate loan commitment.
C) gives its seller the right to change the pre-specified interest rate to reflect the prevailing interest rate.
D) gives its buyer the right to change from a fixed rate contract to a variable rate contract
E) all of the above

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