Which of the Following Is NOT Characteristic of the Real

question 113

Multiple Choice

Which of the following is NOT characteristic of the real estate portfolio for most banks?

• A)Commercial real estate mortgages have been the fastest growing component of real estate loans.
• B)Adjustable rate mortgages have rates that are periodically adjusted to some index.
• C)Borrowers prefer fixed-rate loans to ARMs during periods of high interest rates.
• D)Residential mortgages are the largest component of the real estate loan portfolio.

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Definitions:

Registered

This can refer to securities, companies, or assets that have been officially recorded and recognized by regulatory authorities.

Premium

The amount by which the price of a financial instrument or commodity exceeds its principal or face value, or the amount paid for an insurance policy.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, typically shown as a portion of the bond's nominal value in percentage terms.

Ask Price

The ask price is the lowest price a seller is willing to accept for a security, commodity, or currency in financial markets.