Which of the Following Is FALSE Concerning Negative Amortization

question 12

Multiple Choice

Which of the following is FALSE concerning Negative Amortization:

• A) It can result in a decreases in the borrower's equity in the property
• B) It usually increases default risk
• C) It usually has a lower interest rate than a conventional loan
• D) It usually results in a lower DCR.

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Definitions:

Relaxation Methods

Techniques designed to reduce tension and stress, promoting a state of calmness and tranquility.

Aversion Therapy

A behavioral treatment method that uses unpleasant stimuli to reduce or eliminate undesirable behaviors.

Classical Conditioning

A learning practice in which the consistent linkage of two stimuli results in a response that, initially generated by the second stimulus, is ultimately generated by the first stimulus.

Alcohol Abuse

The excessive and harmful consumption of alcohol, leading to physical, social, and psychological consequences.