From the Perspective of an FI, Which of the Following

Multiple Choice

From the perspective of an FI, which of the following is an advantage of a floating-rate loan?

A) Stable interest payments will be received throughout the loan period.
B) The pre-specified interest rate remains in force over the loan contract period no matter what happens to market interest rates.
C) The bank can request repayment of a loan at any time in the contract period.
D) The default risk is completely eliminated.
E) The interest rate risk is transferred to the borrower.