Question: What is a key distinction between fixed and variable interest rates?Fixed rates adjust periodically based on inflation, whereas variable rates remain unaffected by economic conditions.Fixed

What is a key distinction between fixed and variable interest rates?Fixed rates adjust periodically based on inflation, whereas variable rates remain unaffected by economic conditions.Fixed rates provide stability and predictability, whereas variable rates fluctuate with changes in benchmark rates.Fixed rates are influenced by market conditions, while variable rates remain constant throughout the loan's duration.Fixed rates are used exclusively for short-term financial instruments, while variable rates apply only to long-term investments.

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