The Purpose of a Rate Cap with a Variable Rate

question 98

Multiple Choice

The purpose of a rate cap with a variable rate mortgage is to

• A)minimize interest costs.
• B)prevent changes in the amount of the monthly payment.
• C)increase negative amortization.
• D)restrict the amount by which the interest rate can increase.
• E)lower the escrow account.

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Definitions:

Linguistic Relativity Hypothesis

The theory that the structure of a language influences its speakers' worldview or cognition.

Benjamin Lee Whorf

An American linguist and fire prevention engineer known for his ideas on linguistic relativity, the hypothesis that language influences thought.

Noam Chomsky

An American linguist, philosopher, cognitive scientist, historian, social critic, and political activist known for his theory of generative grammar and criticism of behaviorism.

Ironic Statements

Expressions that usually mean the opposite of what they say, often used for humorous or emphatic effect.