Which of the Following Statements Is False

question 110

Multiple Choice

Which of the following statements is false?

• A)During the past couple of decades,generally high fixed-rate mortgage loan interest rates and the desire to extend housing ownership to more individuals in the U.S. ,the use of adjustable-rate mortgages grew in usage.
• B)An adjustable-rate mortgage (ARM)has an interest rate that changes or varies over time as set by the Federal Reserve.
• C)The interest rate on an ARM is often adjusted annually to reflect changes in treasury bill rates (or other interest rate benchmark).
• D)Lenders typically offer ARMs with variable interest rates for one to five years with a provision to switch to a fixed-rate over the remaining life of the ARM.
• E)all of the above statements are true