What Is the Term Used to Describe the Reduction of the Balance

question 54

Multiple Choice

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

• A)a buy-down.
• B)shared-appreciation.
• C)prepaid interest.
• D)amortization.
• E)a rate cap.

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Definitions:

Linguistic Competence

The innate ability of an individual to recognize and produce an unlimited number of phrases and sentences in their language.

Linguistic Relativity

The hypothesis that the structure of a language influences its speakers' worldview or cognition, suggesting that language and thought are interdependent.

Phonology

Phonology is the study of how sounds are organized and used in natural languages.

Phonetics

The study of speech sounds.