Which of the following is true?

Question

Quizplus · Accepted Answer

A) Mortgages are assets for the lender because they will receive payment and interest for a specified period. For the borrower, it is a liability because they are obligated to pay back the loan. 
B) Lenders are exposed to interest rate risk because if interest rates rise, the fixed rate mortgage will have a lower interest rate compared to the current market. However, if interest rates decrease, the lender will earn a lower return than the current market. 
C) Variable-rate mortgages adjust with the current market interest rates so holding them reduces the interest rate risk of long-term mortgages. The interest rate risk is transferred to the borrower because their payments will fluctuate with the current interest rate.

Which of the Following Is True