Money That Is Usually Deposited with the Lending Institution for the Payment

question 1

Multiple Choice

Money that is usually deposited with the lending institution for the payment of property taxes and homeowner's insurance is called:

• A)points.
• B)an escrow account.
• C)a rate cap.
• D)closing costs.
• E)a buy-down.

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Definitions:

Inferior Good

A type of good for which demand decreases when the income of consumers increases, inversely related to income changes.

Indifference Curves

Curves that represent the locus of various points indicating combinations of goods giving equal satisfaction and utility to the consumer.

Inferior Good

A category of product that sees reduced demand as the income levels of buyers rise.

Normal Good

A normal good is one for which demand increases as the income of consumers increases.