Which of the Following Is False

question 36

Multiple Choice

Which of the following is false?

• A)The longer the term-to-maturity on a mortgage, the smaller the default risk.
• B)If interest rates rise, the default risk on variable rate loans increases.
• C)The lower the down payment, the greater the default risk.
• D)Variable rate loans reduce the interest rate risk.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, ensuring no single entity can dictate prices.

Customer's Willingness

The degree to which customers are prepared to engage with or purchase products and services.

Value Chain Functions

Activities that companies perform to add value to a product or service, including design, production, marketing, and after-sales service.

Support Functions

Auxiliary activities in an organization that assist the core business operations without being part of them, such as IT and HR services.