______________ Is Frequent Refinancing That Do Not Benefit the Borrower

question 78

Multiple Choice

______________ is frequent refinancing that do not benefit the borrower. This practice can result in borrower injury from the fees imposed and from the fact that it decreases home equity and increases the consumer's debt burden, thus increasing the chance of foreclosure.

• A) Loan flipping
• B) Loan refinancing
• C) Securitization
• D) Subprime loans

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Definitions:

Net Operating Income

The total income of a company after deducting operating expenses but before interest and taxes.

Variable Costing

An accounting method that only considers variable costs in the calculation of the cost of goods sold, excluding fixed costs.

Common Fixed Expenses

Operating expenses that do not vary with production volume, such as salaries and rent, shared across multiple products or departments.

Net Operating Income

A financial metric that calculates a company's operational profitability, excluding interest and taxes.