The Premium Option in the Multiple Price Tiers Created for Store

question 46

Multiple Choice

The premium option in the multiple price tiers created for store brands offers

• A) a reduced risk of uncertain sales.
• B) retailers a large number of alternatives for getting rid of excess inventory.
• C) consumers a substantial saving without compromising on quality.
• D) consumers quality that is comparable to that of national brands.
• E) consumers a higher quality than national brands at a higher price.

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Definitions:

Freddie Mac

A public government-sponsored enterprise aimed at expanding the secondary mortgage market by buying loans from lenders.

Credit Standards

The criteria that lenders use to determine the creditworthiness of potential borrowers.

Sub-prime Loans

Loans offered to individuals with poor credit histories or higher risk of default, often at higher interest rates.

Mortgage Default Rate

The percentage of home mortgages on which the borrower is late by ninety days or more with the payments on the loan or it is in the foreclosure process. This rate is sometimes referred to as the serious delinquency rate.