A term loan is less risky to the bank, thus they provide a fixed rate to the customer.

Name: A term loan is less risky to the bank, thus they provide a fixed rate to the customer.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Term loans can be risky for banks due to the long duration and the possibility of the borrower's financial situation changing over time. Banks may offer fixed or variable rates based on their assessment of this risk, not necessarily providing a fixed rate to reduce risk.

A Term Loan Is Less Risky to the Bank, Thus