-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:

Biological Predisposition

An inherent tendency, influenced by genetic factors, to develop certain behaviors, diseases, or conditions.

Preparedness

A state of readiness, often resulting from proper planning and anticipation of future needs or challenges.

Character Strengths

Positive traits reflected in thoughts, feelings, and behaviors that are considered virtues and contribute to the individual flourishing.

Self-Control

The ability to control impulses and delay short-term gratification for greater long-term rewards.