Which of the Following Statements Regarding Fixed-Rate Loans Is True

Multiple Choice

Which of the following statements regarding fixed-rate loans is true?

A) Fixed-rate loans are preferable if interest rates are expected to rise.
B) The cost of fixed-rate loans increases with an increase in the market interest rate.
C) The cost of fixed-rate loans decreases with a decrease in the market interest rate.
D) Fixed-rate loans are preferable if interest rates are expected to fall.
E) Fixed-rate loans have periodic adjustment dates, at which time the interest rate and monthly payment are adjusted as necessary.