An interest rate that is low only for a short time is called:
A) a teaser rate.
B) an annual percentage rate.
C) a balloon payment.
D) a balance transfer fee.

Question

Quizplus · Accepted Answer

A teaser rate is a promotional interest rate offered by lenders for a limited time, usually a few months to a year, after which the rate will increase to a higher, standard rate. This type of rate is often used to attract new customers or encourage existing customers to take out a new loan or credit card.

An Interest Rate That Is Low Only for a Short