Which of the Following Is Not True Regarding Loans Based

question 32

Multiple Choice

Which of the following is not true regarding loans based on the cash values built up in cash-value life insurance policies?

• A)The interest rates are low, ranging from 4 to 6 percent.
• B)Should the insured person die before repaying the loan, the life insurance company will forgive the loan.
• C)Many people fail to pay back such loans because no fixed schedule of repayment is established.
• D)Insurance companies do not pressure borrowers to repay the debt.

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Definitions:

Expected Value

A measure of the central location of a random variable.

Independent Variables

Factors that are manipulated or controlled in an experiment to determine their effects on dependent variables.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Independent Variable

The variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.