-With Which Loan in the Above Table Does the Lender

question 13

Multiple Choice

$\begin{array}{cccc}\begin{array}{l}\\Initial ~Interest~ Rate \\Loan ~Maturity~ years) \\\% Margin ~Above~ Index \\Adjustment ~Interval \\Points \\Interest ~Rate~ Cap\\\end{array}\begin{array}{cccc}\text { LOAN 1 } & \text { LOAN 2 } & \text { LOAN 3 } & \text { LOAN 4 } \\\hline ? & ? & ? & ? \\20 & 20 & 20 & 20 \\3 \% & -- & 3 \% & 3 \% \\1 \mathrm{yr} & -- & 1 \mathrm{yr} & 1 \mathrm{yr} . \\1 \% & 1 \% & 1 \% & 1 \% \\\text { NONE } & --- & 1 \% / \mathrm{yr} . & 3 \% / \mathrm{yr} .\end{array}\end{array}$
-With which loan in the above table does the lender have the lowest interest rate risk?

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

---

Definitions:

National Powers

These are the powers that a sovereign state holds, including legislative, executive, and judicial powers to govern within its territory.

Procedural Due Process

A legal principle mandating the fair and consistent enforcement of laws, ensuring individual rights are respected during legal proceedings.

Legislation Content

The substantive material or provisions contained within a piece of enacted law.

Public Policy

Principles and standards regarded by the legislative or judicial branches of a government as being of fundamental concern to the state and the welfare of its citizens.