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What Are the Risks to the Borrower with Adjustable-Rate Loans

Question 21

Multiple Choice

What are the risks to the borrower with adjustable-rate loans?


A) During times of inflation your salary may increase during the term of the loan.
B) That the market rates of interest may increase during the term of the loan.
C) It is harder to budget for loan payments that may increase during the term of the loan.
D) Both B and C are correct.

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