Which of the Following Describes a Subprime Mortgage

question 1

Multiple Choice

Which of the following describes a subprime mortgage?

• A) The rate of interest is less than the prime rate of interest
• B) The loan-to-value ratio is below average
• C) The life of the mortgage is less than 25 years
• D) The credit risk is high

Understand the concepts of future value, present value, and compound interest in personal finance.

Recognize the role and effects of usury laws in the financial market.

Grasp the significance of real interest rates in investment decisions.

Understand the factors influencing the supply and demand for loanable funds.

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Definitions:

Influences

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Mass Communication

is the process of creating, sending, receiving, and analyzing messages to a large audience through various mediums.

Radio Station

A service that broadcasts radio waves to provide audio content to the public over a certain frequency.

Broadcasting

The distribution of audio or video content to a dispersed audience via any electronic mass communication medium, typically using the electromagnetic spectrum, in a one-to-many model.