One Economic Factor That Can Restrain the Maximum Rate of Home

question 64

Multiple Choice

One economic factor that can restrain the maximum rate of home price appreciation is

• A)the ready availability of negative amortization and pick-a-pay mortgage instruments.
• B)the ready availability of pay option adjustable rate mortgages.
• C)geographic barriers to residential development, such as mountains, oceans and swamps.
• D)a relatively elastic supply of land available for residential development.

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Definitions:

Total Assets Turnover Ratio

Measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets.

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

Window Dressing

Techniques employed by firms to make their financial statements look better than they really are.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.