Which of the Following Is Not True About Interest-Only Mortgages

question 45

Multiple Choice

Which of the following is not true about interest-only mortgages?

• A) Low payments in initial years (10 to 15 years) - only includes interest on borrowed amount.
• B) Low payments in initial years (10 to 15 years) - only includes principal repayment on borrowed amount.
• C) After initial period, payments increase such that entire loan amount is amortized by the end of 30 years.
• D) None of the above is true.

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Definitions:

Blood-Oxygenated-Level-Dependent

A measure used in functional MRI to detect brain activity by assessing changes in blood oxygen levels, reflecting the amount of neural activity in specific areas of the brain.

BOLD Signals

Biological markers in neuroimaging, particularly in functional magnetic resonance imaging (fMRI), which stand for Blood Oxygen Level Dependent signals, reflecting changes in brain activity.

Oxygenated Blood

Blood that has been enriched with oxygen through the process of respiration in the lungs and is carried from the heart to the rest of the body.

Peripheral Nervous System

The part of the nervous system that lies outside the brain and spinal cord, consisting of nerves and ganglia, and responsible for connecting the CNS to limbs and organs.