Mortgage loans can be structured as fixed rate or adjustable rate. As a borrower comparing rates on these and with a choice to accept a fixed or adjustable interest rate structure, you would expect the: Ch4, 5

	a.	fixed rate to be the same as the adjustable rate at the beginning of the loan term as risk is the same
	b.	fixed rate to be higher because you are protected from interest rate changes
	c.	fixed rate could be higher or lower depending on supply of funds in separate markets
	d.	fixed rate to be lower as you are making a long term commitment