Which One of These Situations Creates Negative Amortization

question 79

Multiple Choice

Which one of these situations creates negative amortization?

• A)Increasing the amount of the monthly mortgage payment
• B)Paying less than the monthly interest on a mortgage
• C)Decreasing the amount paid into an escrow account
• D)Lowering the mortgage interest rate
• E)Decreasing the amount of the down payment

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Definitions:

Reinforcement

A consequence that follows an action and increases the likelihood of that action being repeated in the future.

Conditioned Responses

Behavioral reactions that have been learned through repeated associations with a specific stimulus.

Respondent Behaviors

Reactions that are automatic responses to a specific stimulus, as opposed to behaviors learned through consequence, such as in operant conditioning.

Desensitization

The process of reducing sensitivity towards a stimulus, often used in therapy to help individuals cope with phobias or anxiety.