What Is the Term Used to Describe the Reduction of the Balance

question 36

Multiple Choice

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

• A)A buy-down
• B)Shared-appreciation
• C)Prepaid interest
• D)Amortization
• E)A rate cap

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Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by excessive, uncontrollable worry about everyday things, affecting the individual's daily life and functioning.

Public Speaking

The act of speaking in front of a live audience with the intention to inform, persuade, or entertain.

Compulsion

An irresistible urge to perform an irrational or unnecessary act or behavior repeatedly.

Obsession

A persistent, intrusive, and unwanted thought or impulse that causes significant distress or anxiety.