Choose the best term to fill in the blank. A ______ can change based on market conditions Choose 1 answer: Choose 1 answer: (Choice A) fixed interest rate A fixed interest rate (Choice B) variable interest rate B variable interest rate (Choice C) simple interest C simple interest
A variable interest rate
The best term to fill in the blank would be (Choice B) variable interest rate.
The best term to fill in the blank is (Choice B) variable interest rate.
To determine the correct answer, we need to understand what "variable interest rate" means. A variable interest rate is an interest rate that can change over time based on market conditions or other factors. This means that the rate may increase or decrease depending on certain economic factors.
In contrast, a fixed interest rate (Choice A) remains the same throughout the entire duration of the loan or investment, regardless of market fluctuations. It does not change based on market conditions.
Simple interest (Choice C) is a calculation method used to determine the interest earned or charged on a loan or investment. It is calculated only on the principal amount, without taking into account any accrued interest or compounding.
Based on the given criteria, a variable interest rate is the best term to fill in the blank as it accurately describes an interest rate that can change based on market conditions.