A variable interest rate loan is a loan where the interest charged on the outstanding balance fluctuates based on an underlying benchmark or index that periodically changes. ... However, when interest rates rise, borrowers who hold a variable rate loan will find the amount due on their loan payments also increases.
Answer:
Explanation:monetary policy or Money related approach is the macroeconomic strategy set somewhere around the national bank. It includes the board of cash supply and financing cost and is the interest side monetary arrangement utilized by the legislature of a nation to accomplish macroeconomic targets like swelling, utilization, development and liquidity.
