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What is an interest rate that rises and falls with market rates of interest called? Select the correct answer from the options listed below Floating rate Semi-fixed rate Stepped rate Freedom rate

Question

What is an interest rate that rises and falls with market rates of interest
called?
Select the correct answer from the options listed below
Floating rate
Semi-fixed rate
Stepped rate
Freedom rate

What is an interest rate that rises and falls with market rates of interest called? Select the correct answer from the options listed below Floating rate Semi-fixed rate Stepped rate Freedom rate

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IvyMaster · Tutor for 5 years

Answer

Floating rate

Explain

## Step1:<br />We need to identify an interest rate that varies according to market rates of interest. In economics and finance, two types of interest rates can fluctuate over time--Variable interest rate and Floating interest rate. Variable interest rates change periodically. On the other hand, floating interest rates adjust with prevailing market rates. Therefore, a floating rate is the correct answer.
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