A Problem with Home Equity Loans Is the

question 16

Multiple Choice

A problem with home equity loans is the

• A)high rate of interest on these loans.
• B)difficulty in qualifying for these loans.
• C)short-term nature of these loans.
• D)temptation to spread payments over a long term.
• E)tax disadvantages of these loans.

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining anticipated income and expenses over a certain period.

Activity Variance

The difference between predicted and actual costs of business activities, used to assess performance and control costs.

Wages And Salaries

Wages and Salaries represent the remuneration paid to employees in return for their labor, whether calculated by hour, day, or salaried basis.

Budgeting

The process of creating a plan to spend your money, allowing you to determine in advance whether you will have enough money to do the things you need to do or would like to do.