Variable rate loans typically have a interest rate than fixed rate loans because with variable rate loans, the borrower assumes the risk that the interest rate might lower, decrease lower, increase higher, increase higher, decrease

Answers

1. Lower

2. Increase

Variable rate loans typically have a lower interest rate than fixed rate loans because with variable rate loans, the borrower assumes the risk that the interest rate might increase. As compared with fixed rate loans, the starting interest rates of variable rate loans are lower, the risk however, is that the interest rate may increase over time.

Lower, Increase

Step-by-step explanation:

Variable rate loans are usually associated with lower interest rates.

However, unlike fixed rate loans, variable rate loans change as interest rates change.

If interest rates go up, your interest rate on your loan will go up as well.

0.872

Step-by-step explanation:

The line is increasing.  This means the correlation coefficient will be positive.

This is a fairly good fit; this means we want the larger of the two positive numbers, or 0.872.