-Which Loan in the Above Table Is a FRM?
A)

question 20

Multiple Choice

$\begin{array}{cccc}\begin{array}{l}\\Initial ~Interest~ Rate \\Loan ~Maturity~ years) \\\% Margin ~Above~ Index \\Adjustment ~Interval \\Points \\Interest ~Rate~ Cap\\\end{array}\begin{array}{cccc}\text { LOAN 1 } & \text { LOAN 2 } & \text { LOAN 3 } & \text { LOAN 4 } \\\hline ? & ? & ? & ? \\20 & 20 & 20 & 20 \\3 \% & -- & 3 \% & 3 \% \\1 \mathrm{yr} & -- & 1 \mathrm{yr} & 1 \mathrm{yr} . \\1 \% & 1 \% & 1 \% & 1 \% \\\text { NONE } & --- & 1 \% / \mathrm{yr} . & 3 \% / \mathrm{yr} .\end{array}\end{array}$
-Which loan in the above table is a FRM?

• A) Loan 1
• B) Loan 2
• C) Loan 3
• D) Loan 4

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Definitions:

Outwardly Oriented

Refers to focusing attention or resources on external factors or the outside world rather than internal or personal issues.

Social Experience

The acquisition of knowledge or skills through interaction with others in a social context.

Sequential Stages

The concept that many processes, including psychological and social ones, occur in a specific, ordered series of steps or phases.

Observing Children

The practice of closely watching and noting the behavior, development, or actions of children in order to understand or assess their physical, cognitive, or emotional growth.