Based on the Rising Housing Prices of 2000-2005, Many Buyers

question 57

Multiple Choice

Based on the rising housing prices of 2000-2005, many buyers opted for interest-only loans and variable rate mortgages with little or no down payment because

• A) they expected short-term interest rates to fall substantially in the future and this would reduce their monthly mortgage payment in the years ahead.
• B) variable rate mortgages are a good way to reduce the risk accompanying your investment when you plan to stay in the house for a long time.
• C) they thought housing prices would continue to rise and therefore they would be able to sell the house for a profit within a couple of years.
• D) they could easily recoup their investment, even if there was a downturn in housing prices in the future.

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Definitions:

Authoritarian

A governing or parenting style characterized by strict discipline and an expectation of obedience without question.

"Because I Say So"

A style of authoritarian parenting where demands are made without explanation or justification to the child.

Uninvolved

A parenting style characterized by a lack of responsiveness to a child's needs, emotional detachment, and minimal communication.

Own Needs

The personal requirements or desires individuals prioritize and seek to fulfill to maintain their well-being and happiness.