Identify the incorrect statements. I. A fixed-rate mortgage specifies a fixed interest rate over the amortization period of the mortgage. II. When borrowers expect interest rates to rise, they will prefer a variable rate mortgage over a fixed rate mortgage. III. Most financial institutions post similar rates for similar mortgage terms, but the borrower can negotiate the rate. IV. Variable rate mortgages can be open or closed.

Select one:

a.

I and II, only

b.

II and III, only

c.

III and IV, only

d.

I and IV, only