Under Which Conditions Would One Be MOST LIKELY to See

question 20

Multiple Choice

Under which conditions would one be MOST LIKELY to see an interest rate swap?

• A)A borrower wants a fixed rate loan,but the bank only offers floating rate loans; the borrower "swaps" loans with someone who has a fixed rate loan
• B)A borrower does not have enough equity for a conforming loan,so he or she takes out a "second" mortgage loan
• C)A borrower does not have enough equity for a conforming loan,so he or she "swaps" mortgage insurance for increased equity investment
• D)A bankruptcy court orders a lender to "swap" a debtor's high interest rate for a lower interest rate

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Definitions:

Drinking Water Standards

Regulatory benchmarks set to ensure the safety and quality of water for human consumption.

Concentration

The amount of a given substance in a specified volume or mass of a solution or mixture.

Groundwater

Water that is found underground in the cracks and spaces in soil, sand, and rock, an important source of water for wells and springs.

Irrigation

The artificial application of water to land to assist in the production of crops.