Which of the Following Would Increase the Speed of Equity

question 23

Multiple Choice

Which of the following would increase the speed of equity growth for a homebuyer?

• A) Making a down payment of 10 percent instead of 20 percent
• B) Obtaining a mortgage interest rate of 9 percent instead of 8 percent
• C) Obtaining a 15-year mortgage instead of a 30-year mortgage
• D) Making larger deposits to the escrow account
• E) Obtaining an interest-only mortgage

---

Definitions:

Industry Entry

The process by which new competitors join an existing market, often leading to increased competition.

Profit Circumstances

Conditions or situations that influence the profitability of a business or investment.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for significant influence over pricing.

Short-Run Equilibrium

A state in the economic short term where demand equals supply, and there are no external forces prompting change.