Which two statements are true about how an index works?
A. It remains constant during the loan term.
B. It gives borrowers a predictable payment structure.
C. It can change over time.
D. It is determined by each individual bank.
E. It may be the prime rate or the U.S. treasury bill rate.

Question

Which two statements are true about how an index works? 
A. It remains constant during the loan term. 
B. It gives borrowers a predictable payment structure. 
C. It can change over time. 
D. It is determined by each individual bank. 
E. It may be the prime rate or the U.S. treasury bill rate.

GinnyAnswer · Answer

The two true statements about how an index works are that it can change over time and it may be the prime rate or the U.S. Treasury bill rate. These rates fluctuate based on market conditions, affecting the interest rates borrowers pay. Understanding these indexes is essential for managing loans effectively. ;

Answered by GinnyAnswer | 2025-07-07

Which two statements are true about how an index works? A. It remains constant during the loan term. B. It gives borrowers a predictable payment structure. C. It can change over time. D. It is determined by each individual bank. E. It may be the prime rate or the U.S. treasury bill rate.

Answer (1)

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Which two statements are true about how an index works?
A. It remains constant during the loan term.
B. It gives borrowers a predictable payment structure.
C. It can change over time.
D. It is determined by each individual bank.
E. It may be the prime rate or the U.S. treasury bill rate.