What Are the Risks to the Borrower with Adjustable-Rate Loans

question 120

Multiple Choice

What are the risks to the borrower with adjustable-rate loans?

• A)During times of inflation your salary may increase during the term of the loan.
• B)That the market rates of interest may increase during the term of the loan.
• C)It is harder to budget for loan payments that may increase during the term of the loan.
• D)Both B and C are correct.

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Definitions:

Fall Asleep

The process of transitioning from wakefulness into sleep, a natural and periodic state of rest.

Snore Loudly

The act of producing loud breathing sounds while asleep, often due to partial obstruction of the airways.

Sleep-Wake Diary

A record kept over a period of time noting the times one goes to sleep and wakes up to analyze sleep patterns and disturbances.

24 Hours

A full day; the total number of hours in a single day.