Which of the Below Statements Is TRUE

question 41

Multiple Choice

Which of the below statements is TRUE?

• A) For an fixed-rate mortgage (FRM), as the name implies, the note rate changes over the life of the loan.
• B) A category of reference rates used in ARMs is the nominal rate.
• C) The basic ARM is one that resets periodically and has no other terms that affect the monthly mortgage payment.
• D) An unpopular form of an ARM is the hybrid ARM.

---

Definitions:

Divisional Design

refers to an organizational structure where operations are segregated based on product lines, markets, or geographic regions, allowing for more focused management and resources allocation.

Diversification Strategy

A business approach where a company expands its operations by entering into new markets or product lines, aiming to reduce overall risk.

Core Products

Core products are the essential products or services offered by a company that define its primary business activities and value proposition.

New Products

Innovations or improvements in goods and services that companies introduce to the market, aiming to fulfill consumer needs or open new markets.