The Expected Cost of Borrowing Does Not Depend on Which

question 5

Multiple Choice

The expected cost of borrowing does not depend on which of the following provisions?

• A) The frequency of payment adjustments.
• B) The inclusions of caps and floors on the interest rate,payment or loan balances.
• C) The spread over the index chosen for a given ARM.
• D) None of the above.

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Definitions:

Cybercrime

Any criminal action perpetrated primarily through the use of a computer.

Social Networking

A means by which people use the Internet to communicate and share information among their immediate friends and to meet and connect with others through common interests, experiences, and friends.

Phishing

The process of sending e-mail messages to lure Internet users into revealing personal information such as credit card or Social Security numbers or other sensitive information that could lead to identity theft.

Script Virus

A type of malware that is executed through a scripting language, capable of infecting multiple files and spreading across networks.