What motivation encourages commercial banks

Reference no: EM132002816

Question: What motivation encourages commercial banks to make variable-rate mortgages? Why are variable -rate mortgage rates normally below fixed mortgage rates? In an increasing rate environment, would you expect banks to increase or decrease the adjustable-rate proportion of their mortgage portfolios?

Reference no: EM132002816

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What motivation encourages commercial banks : What motivation encourages commercial banks to make variable-rate mortgages? Why are variable -rate mortgage rates normally below fixed mortgage rates?

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