The interest rate on a VRM may be adjusted
A)only when prime rate moves higher.
B)only on the expiry of the term.
C)only when prime rate moves lower.
D)any time the prime rate changes.

Question

Quizplus · Accepted Answer

The interest rate on a VRM (Variable Rate Mortgage) may be adjusted anytime the prime rate changes. The VRM interest rate is linked to the prime rate, and the lender can adjust it as the prime rate changes. The prime rate can move up or down due to various economic factors, and the VRM interest rate will be adjusted accordingly. Therefore D is the best choice.

The Interest Rate on a VRM May Be Adjusted