With a floating-rate note, the interest rate on the note changes
A. when the risk level of the borrower changes.
B. when the prime rate changes.
C. when the demand for loans changes.
D. when bank profits change.
Answer:B
With a floating-rate note, the interest rate on the note changes
A. when the risk level of the borrower changes. B. when the prime rate changes. C. when the demand for loans changes. D. when bank profits change.