Requiring a Home Buyer to Have a Large Down Payment

question 24

Multiple Choice

Requiring a home buyer to have a large down payment reduces the risk to a mortgage lender because:

• A) it means that if the price of the house falls, the owner suffers the loss.
• B) the buyer is less likely to sell the house.
• C) it means the buyer likely underpaid when she bought the house.
• D) it means there is more information available on the buyer.

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Definitions:

Competitive Advantage

The attribute that allows an organization to outperform its competitors.

Organization Strategy

The overarching plan or direction a company adopts to achieve its long-term goals and objectives, taking into account its resources, capabilities, and environment.

Growth Stage

A phase in the product life cycle where a product's market acceptance and sales begin to increase significantly.

OM Strategies

Operational management strategies that focus on improving efficiency, productivity, and competitiveness of an organization's operations.