If Rates in the Market Fall Between Now and One

question 32

Multiple Choice

If rates in the market fall between now and one month from now,the mortgage banker:

• A) loses as the mortgages are sold at a discount.
• B) gains as the mortgages are sold at a discount.
• C) loses as the mortgages are sold at a premium.
• D) gains as the mortgages are sold at a premium.
• E) neither gains nor loses.

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Definitions:

Demand

Refers to the market's desire for a product or service, quantified by the amount people are ready to buy at various prices.

Production

The process of creating, manufacturing, or producing goods and services.

Inbound Transportation

The process and logistics involved in moving goods from suppliers to a company's premises.

Outbound Transportation

The process of moving goods from a company's warehouse or production facility to their destination, typically the end customer or retail outlets.