Variable-rate loans tied to long-term rates expose you to more risk of rate changes than variable-rate loans tied to short-term rates.

Name: Variable-rate loans tied to long-term rates expose you to more risk of rate changes than variable-rate loans tied to short-term rates.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable-rate loans tied to short-term rates are generally more volatile and expose you to more risk of rate changes because short-term interest rates can fluctuate more frequently and sharply than long-term rates.

Variable-Rate Loans Tied to Long-Term Rates Expose You to More