Finance
Which index is commonly used to adjust rates on adjustable-rate mortgages?
AConsumer Price Index (CPI)
BSecured Overnight Financing Rate (SOFR)✓ Correct
CGross Domestic Product (GDP) growth rate
DS&P 500 index
Explanation
SOFR (Secured Overnight Financing Rate) has replaced LIBOR as the primary benchmark index for many adjustable-rate mortgages. The lender adds a margin to the index to calculate the adjusted rate.
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