If a Borrower Pays a Constant Monthly Amount on a Home

question 24

Multiple Choice

If a borrower pays a constant monthly amount on a home mortgage based on a set rate of interest, which type of mortgage does she have?

• A)prepayment-based
• B)open-end
• C)fixed-rate
• D)variable-rate
• E)floating-rate

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Definitions:

Wage Rate

The standard amount of compensation given to employees for their labor, typically expressed per hour, day, or piece produced.

Production Costs

These are the expenses associated with manufacturing a product, including labor, materials, and overhead costs.

Native-born Workers

Individuals born in a particular country working in its labor market, as opposed to foreign-born workers.

Immigration

The process by which individuals move from one country to another, with the intention of settling, permanently or temporarily, in the new country.