If You Do Not Pay Back Any of the Loan

question 1

Multiple Choice

If you do not pay back any of the loan amount for a portion of the loan period,you have a(n)

• A) Balloon mortgage.
• B) Buy-down.
• C) Convertible ARM.
• D) Growing-equity mortgage.
• E) Interest-only mortgage.

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Definitions:

Total Revenue

The total income generated by a firm from the sale of goods or services before any costs or expenses are subtracted.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Demand Increase

A situation where the quantity of a product or service that consumers are willing and able to buy at a given price rises.

Price Elasticity

The sensitivity measure of demand for a good relative to its price changes.