Which of the Following Is a Feature of a Home

question 9

Multiple Choice

Which of the following is a feature of a home equity loan?

• A)The interest rate on a home equity loan is higher than that on other loans.
• B)The interest paid on a home equity loan is tax deductible.
• C)A home equity loan is generally the first mortgage loan.
• D)A home equity loan is a single-payment loan.
• E)A home equity loan is an unsecured loan.

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Definitions:

Elastic

Describes a situation where the demand or supply of a good or service changes significantly in response to price changes.

Fixed Costs

Expenses that remain consistent regardless of production or sales volume, like lease payments, wages, and insurance costs.

Total Costs

The complete amount of all costs incurred during the production of goods or services, including both steady and varying expenses.

Positive Profits

A financial situation where the revenues generated by a business exceed its costs, leading to a net gain.