A credit card whose interest rate changes as a specific market interest rate changes is said to have a
A) variable rate.
B) fixed rate.
C) constant rate.
D) tiered rate.

Question

Quizplus · Accepted Answer

A variable rate on a credit card means that the interest rate can change based on fluctuations in an underlying interest rate index. This is in contrast to a fixed rate, which remains constant throughout the life of the loan.

A Credit Card Whose Interest Rate Changes as a Specific