What motivation encourages commercial banks to make variable rate mortgages? Why are variable rate mortgage rates normally

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What motivation encourages commercial banks to make variable rate mortgages? Why are variable rate mortgage rates normally below fixed mortgage rates? As the level of rates declines, would you expect banks to increase or decrease the adjustable rate proportion of their mortgage portfolios?
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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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