Which of the Following Is True of Fixed-Rate Loans

Multiple Choice

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

A) Fixed-rate loans are preferable when 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 when interest rates are expected to fall.
E) The interest rates on fixed-rate-loans have periodic adjustment dates,at which time monthly payments are adjusted.