Mortgages with Variable Interest Rates

question 79

Multiple Choice

Mortgages with variable interest rates:

• A) increase the risk of expected inflation to creditors.
• B) increase economic efficiency.
• C) are offered at interest rates that can be adjusted to changes in inflation over time.
• D) make borrowers worse off when inflation increases.
• E) shift the risk of unexpected inflation from the borrower to the lender.

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Definitions:

Common Causes

These refer to the usual, expected reasons behind variation in process performance or quality control.

Quality Function Deployment

A systematic approach to design based on a company's effort to meet customer needs and product quality by translating customer desires into engineering characteristics for a product.

Customer Requirements

Explicit and implicit needs or expectations that customers have concerning a product, service, or experience.

Specifications

Detailed descriptions of the design, materials, and performance requirements for products or services.