What are "teaser loans" extended by Banks?

Loans where fixed rate of interest is charged by Banks

Loans where floating rate of interest is charged by Banks

Loans wherein the rate of interest in the initial period is less and goes up subsequently

Loans wherein the rate of interest in the initial stages is more and it goes down subsequently

Solution

Correct option is C

Teaser loans are loans that offer a lower interest rate for an initial period, usually to attract borrowers. After this introductory period, the interest rate increases to a higher or market rate. For instance, a borrower may enjoy a rate of 6% for the first few years, and after that, the rate could rise to 8% or higher for the remainder of the loan term. These loans are often used for home loans and are common in products like adjustable-rate mortgages (ARMs)