By the Third Quarter of 2011,U

question 16

Multiple Choice

By the third quarter of 2011,U.S.households had accumulated $6.2 trillion in housing equity,which represents about 11 percent of their net worth.What proportion of U.S.households own their home?

• A)one-third
• B)one-half
• C)two-thirds
• D)three-fourths

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Definitions:

Upper Limit

The maximum value or level that is allowed or attainable in a given situation.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves within which no financing is needed.

Cash Balance Target

A financial strategy that involves setting a specific amount of cash reserves that a company aims to maintain to meet future expenses, emergencies, or investment opportunities.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a percentage of the principal amount.