A Home Equity Lines of Credit Is a Line of Credit

question 2

Multiple Choice

A home equity lines of credit is a line of credit (HELOC) extended to a _____ in exchange for collateral.The limit on the deductibility of a HELOC for the construction or improvement to the home is _____.

• A)Banker / $50,000.
• B)Homeowner / $50,000.
• C)Banker / $100,000.
• D)Homeowner / $100,000.

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Definitions:

Oceanic Ridge

Underwater mountain systems formed by plate tectonics, consisting of continuous volcanic mountain chains in the ocean.

Trench

A narrow, steep-sided, elongate depression of the deep seafloor, formed by bending down of a subducting oceanic plate at a convergent plate boundary; includes the deepest parts of the ocean.

Trench Rollback

Process by which a dense oceanic plate subducts into the asthenosphere, sinks, and tends to bend or roll away from the island arc.

Back-arc Rifting

A geological process occurring behind a volcanic arc, involving the stretching and cracking of the Earth's crust, leading to the formation of a new ocean basin.