Which of the Following Is Not Used to Adjust ARM

question 48

Multiple Choice

Which of the following is not used to adjust ARM rates?

• A) Treasury security rates
• B) Dow Jones Mortgage Rate Index
• C) S&L cost of funds index
• D) current fixed-rate mortgage index
• E) LIBOR

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Definitions:

Workers

Individuals engaged in any form of economic activity to earn a living, including both paid and unpaid efforts.

Diseconomies of Scale

The phenomenon where, as a firm or industry grows beyond a certain point, per unit costs start increasing due to inefficiencies.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added, the increase in output will eventually decrease, holding other factors constant.