Variable rates are equally risky for lender and borrower

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Reference no: EM13983950

Which of the following statements is most correct?

a. Compared to fixed interest rates, variable rates are riskier for the borrower but less risky for the lender.

b. Compared to fixed interest rates, variable rates are riskier for the lender but less risky for the borrower.

c. Variable rates are equally risky for the lender and the borrower.

d. Variable rate debt never should be used by healthcare organizations because it is too risky.

e. Fixed interest rates are more prevalent when long-term borrowing rates are high.

Reference no: EM13983950

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