Anita was not happy with the bank's interest rate policy. They offered a fixed…

2024

Anita was not happy with the bank's interest rate policy. They offered a fixed rate on all loans while she wanted a _________ rate.

  1. A.

    moving

  2. B.

    floating

  3. C.

    free

  4. D.

    market

Show answer & explanation

Correct answer: B

In banking terminology, loan interest rates are classified using a specific pair of terms: a "fixed" rate stays constant for the entire loan tenure, while its direct counterpart is a rate that changes periodically in line with a benchmark or base rate.

The sentence draws exactly this contrast: the bank offered a "fixed rate on all loans," while Anita wanted the opposite type of rate. The specific term for this opposite category is "floating."

Why the other options don't fit:

  • moving — not an established loan-rate term; no such category exists in banking terminology.

  • free — describes cost (no charge), unrelated to how a rate's structure is classified.

  • market — names broader economic conditions that influence a rate, not the specific one-word category label itself.

Ans: floating

Explore the full course: Mp Cooperative Bank 2026