Which Statement About Adjustable-Rate Mortgages Is True

question 61

Multiple Choice

Which statement about adjustable-rate mortgages is true?

• A) Interest rates cannot change over the life of the mortgage.
• B) Adjustable-rate mortgages are especially attractive to high-income buyers.
• C) Adjustable-rate mortgages usually have interest rates lower than market rates during their first year.
• D) Adjustable-rate mortgages are more attractive when interest rates on fixed mortgages fall.

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Definitions:

Chinese Economy

The economic system of the People's Republic of China, known for its rapid growth, manufacturing base, and significant role in global trade.

Per Capita GDP

The gross domestic product of a country divided by its population, reflecting the average economic output per person.

Less Developed Countries

Nations with lower living standards, undeveloped industrial bases, and low Human Development Index (HDI) relative to other countries.

Annual Rate

A rate of interest, growth, or performance measured over a twelve-month period.